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OH
B T
echn
olog
y A
G •
Ann
ual R
epor
t 201
0
The OHB Group at a glance ➤
Revenues
Total revenues
EBITDA
EBIT
EBT
Net income for the period
Earnings per share (EUR)
Total assets
Equity
Cash flow from operating activities
Equity investments
thereof capital spending
Employees on December 31
2010
425,448
453,323
33,688
22,730
15,384
9,642
0.55
466,396
105,170
42,123
19,126
6,543
1,677
2009
287,164
321,818
31,659
20,771
18,039
14,860
0.96
441,905
98,125
32,596
14,681
120
1,546
2008
232,473
260,029
28,736
18,708
16,092
8,998
0.61
328,104
81,362
9,353
16,260
1,520
1,284
2007
218,801
223,340
25,903
17,486
18,373
12,478
0.84
315,011
81,541
4,382
20,053
4,331
1,189
2006
163,147
185,699
27,936
20,428
21,982
12,016
0.81
287,494
79,104
–6,511
6,876
1,378
823
Closing price
Year high
Year low
Market capitalization at year-end
Number of shares
2010
16.60
18.34
11.50
290 million
17,468,096
2009
11.20
11.35
5.85
196 million
17,468,096
2008
8.00
13.92
4.82
119 million
14,928,096
2007
13.59
15.45
9.65
203 million
14,928,096
2006
11.55
11.89
7.40
172 million
14,928,096
The Stock in EUR 000s
The Group in EUR 000s
OHB Technology AG in Figures
Calendar of events in
Annual press conference and release of annual report for 2010, Bremen March 16
Analyst conference, Frankfurt/Main March 16
3 month report/analyst conference call May 12
Annual general meeting, Bremen May 12
6 month report/analyst conference call August 10
9 month report/analyst conference call November 9
Analyst presentation at Deutsches Eigenkapitalforum,
Frankfurt/Main November 21–23
OHB Technology AG
Karl-Ferdinand-Braun-Str. 8
28359 Bremen, Germany
Phone: +49 (0) 421 2020-8
Fax: +49 (0) 421 2020-613
www.ohb-technology.de
➤Glossary
Annual Report 2010
OH
B T
echn
olog
y A
G •
Ann
ual R
epor
t 201
0
The OHB Group at a glance ➤
Revenues
Total revenues
EBITDA
EBIT
EBT
Net income for the period
Earnings per share (EUR)
Total assets
Equity
Cash flow from operating activities
Equity investments
thereof capital spending
Employees on December 31
2010
425,448
453,323
33,688
22,730
15,384
9,642
0.55
466,396
105,170
42,123
19,126
6,543
1,677
2009
287,164
321,818
31,659
20,771
18,039
14,860
0.96
441,905
98,125
32,596
14,681
120
1,546
2008
232,473
260,029
28,736
18,708
16,092
8,998
0.61
328,104
81,362
9,353
16,260
1,520
1,284
2007
218,801
223,340
25,903
17,486
18,373
12,478
0.84
315,011
81,541
4,382
20,053
4,331
1,189
2006
163,147
185,699
27,936
20,428
21,982
12,016
0.81
287,494
79,104
–6,511
6,876
1,378
823
Closing price
Year high
Year low
Market capitalization at year-end
Number of shares
2010
16.60
18.34
11.50
290 million
17,468,096
2009
11.20
11.35
5.85
196 million
17,468,096
2008
8.00
13.92
4.82
119 million
14,928,096
2007
13.59
15.45
9.65
203 million
14,928,096
2006
11.55
11.89
7.40
172 million
14,928,096
The Stock in EUR 000s
The Group in EUR 000s
OHB Technology AG in Figures
Calendar of events in
Annual press conference and release of annual report for 2010, Bremen March 16
Analyst conference, Frankfurt/Main March 16
3 month report/analyst conference call May 12
Annual general meeting, Bremen May 12
6 month report/analyst conference call August 10
9 month report/analyst conference call November 9
Analyst presentation at Deutsches Eigenkapitalforum,
Frankfurt/Main November 21–23
OHB Technology AG
Karl-Ferdinand-Braun-Str. 8
28359 Bremen, Germany
Phone: +49 (0) 421 2020-8
Fax: +49 (0) 421 2020-613
www.ohb-technology.de
➤Glossary
Annual Report 2010
contents
02 Lettertotheshareholders
06 ReportoftheSupervisoryBoard
11 Interview
14 Highlights2010
40 OHBTechnologystock
44 Groupmanagementreport 45 Businessperformanceandunderlyingconditions 45 Highlightsin2010 45 Underlyingeconomicconditions 46 OrganizationalandlegalstructureoftheGroup 47 Businessperformancein2010 51 Salesandorders 53 Resultsofoperations 53 Assetsandfinancialcondition 54 Employees 54 Researchanddevelopment 55 Quality,environmentmanagementanddataprotection 57 Significanteventsoccurringaftertheendoftheperiodunderreview 57 Outlook 58 Internalcontrolandriskmanagementsystem 59 Opportunityandriskreport 60 Compensationreport 60 Relatedpartiesreport 60 DisclosuresinaccordancewithSection315(4) oftheGermanCommercialCode 61 Corporategovernancedeclaration
62 CorporateGovernance
64 Consolidatedfinancialstatements 65 Consolidatedincomestatement 65 Statementofcomprehensiveincome 66 Consolidatedbalancesheet 67 Consolidatedcashflowstatement 68 Consolidatedstatementofchangesinassets 70 Consolidatedstatementofchangesinequity 70 Notestotheconsolidatedfinancialstatements 91 Auditor’scertificate
92 Furtherdisclosures 92 Contactinformation/Imprint U Glossary/Calendarofevents(insidebackcover)
100 %
100 % 100 %
100 %
100 % 100 %
74,9 %
100 %
100 %
100 %
100 %
70 %
Glossary
THE GROUP
OHB Technology AG is a European aerospace and technology group and one of the most important independent forces in European aerospace. With almost 30 years of experience in developing and executing innovative space systems and structures and its range of specific aerospace and telematics products, the OHB Group is superbly positioned to face inter-national competition.
The OHB Group at a glance
Business units and subsidiaries
Space Systems + SecurityThis business unit’s activities encompass satellites, human spaceflight, exploration and security/reconnaissance technolo-gies. It develops and builds low-orbit and geostationary small satellites for science, navigation, communications and earth observation. The human space flight segment includes work on constructing the International Space Station ISS and fitting it out with research equipment. Exploration primarily entails research of outer space. Reconnaissance satellites and broad-band radio transmission of imaging data form the core of the security and reconnaissance activities.
Payloads + Science This business unit specializes in developing and implementing payloads, scientific equipment and devices for aeronautics/aerospace, research institutes and industry. Applications range from earth observation and satellite navigation to scientific payloads for exploration and the ISS as well as technology testing.
Space Transportation InternationalThis business unit comprises and integrates all non-German activities in connection with the construction of micro and mini-satellites and ground segments, human and unmanned space flight systems and scientific payloads.
Space Transportation + Aerospace Structures This business unit is primarily a supplier of key components for aerospace and aviation products and possesses system skills in the antenna and mechatronics segment. Thus, MT Aerospace currently contributes around 10% of the hardware for the Ariane 5 launch vehicle, making it the largest German supplier for this project. In addition, MT Aerospace supplies fresh and waste water tanks primarily for the Airbus fleet and develops and produces components for aircraft.
Telematics + Satellite OperationsThe Telematics business unit develops comprehensive solu-tions for the efficient management of transportation activities. The main focus of its activities is on OEM solutions for commer-cial vehicle producers, applications for government agencies and security organizations as well as geographical information systems and web-based database solutions. This business unit is also responsible for marketing ORBCOMM satellite services across Europe.
Telematics + Satellite Operations
OHB Teledata GmbH, Bremen, Germany
megatel GmbH, Bremen, Germany
Telematic Solutions S.p.A., Milan, Italy
Space Transportation + Aerospace Structures
MT Aerospace AG, Augsburg, Germany
MT Mechatronics GmbH, Mainz, Germany
MT Aerospace Guyane S.A.S., Kourou, French Guiana
MT Aerospace Satellite Products Ltd., Wolverhampton, UK
AGILE Astrorivelatore Gamma ad Immagini Leggero;
Italian astronomic research satellite
AIS Automatic Identification System; radio-based system
for identifying the location and parameters of larger ships
AQAP Allied Quality Assurance Publications; series of
standards developed by NATA from the military standard
for quality assurance systems
ARDS Aerial Reconnaissance Data System; broadband
system for transmitting aerial reconnaissance images
ARTES-7 Long-term ESA plan for developing a European
communications satellite network using the latest laser
communications.
ARTES-11 Long-term ESA plan for the development of
small geostationary telecommunications satellites
BMBVS German Federal Ministry of Traffic, Construction
and Urban Development
ATV Automated Transfer Vehicle; unmanned space
transporter for supply flights to the ISS
BMVg German Federal Ministry of Defense
BMWi German Federal Ministry of Economics and
Technology
BWB German Federal Office of Defense Technology and
Procurement
CFK Carbon fiber-reinforced plastic
CNES Centre national d‘études spatiales; French space
agency
COLUMBUS Name of the European module of the
International Space Station
DBO Defined benefit obligation
DGA Délégué général pour l’armement; French military
procurement agency
DLR Deutsches Zentrum für Luft- und Raumfahrt;
German Space Agency
D-WERDAS Demonstrator- Wide-range relay-based data
transmission system
EBIT Earnings before interest and taxes
EBITDA Earnings before interest, taxes, depreciation and
amortization
EBT Earnings before taxes
EDRS European Data Relay System; system for
implementing a data network in space using optical
satellite communications
EnMAP Environmental Mapping and Analysis Program;
satellite for hyperspectral Earth observation
EpM European Physiology Modules; human-physiology
research payload for the ISS Columbus module
EPS Earnings per share
ESA European Space Agency
E-SGA German acronym for Europeanization of satellite-
based reconnaissance
ETC European Transport Carrier; transport rack for
sensitive scientific experiments on board the European
Columbus module of the ISS
ExoMars ESA Mars exploration mission
R+D Research and development
FM Flight model
FSLGS French SAR-Lupe Ground Segment- configuration
of French Helios ground satellite to receive SAR-Lupe
reconnaissance images
Galileo European global satellite-based navigation
system; Galileo is a trade mark owned by the European
Commission. The GALILEO program is a joint initiative of
the European Union and the European Space Agency ESA.
GIS Geographic information system
GMES European initiative for the global monitoring for
environment and security
GRADFLEX GRAdient Driven FLuctuations EXperiment
IAS International Accounting Standards
IFRS International Financial Reporting Standards
IOT Industrial Operator Team; team for preparing the
start-up of the Columbus module for the ISS
ISS International Space Station
KSA Strategic reconnaissance command of the German
federal armed forces; user of the SAR-Lupe system
LEO Low earth orbit
MTG Meteosat Third Generation; program to develop,
build and launch third-generation weather satellites
NASA National Aeronautics and Space Administration;
US space agency
OEM Original equipment manufacturer
ORBCOMM CDS ORBCOMM Concept Demonstration
Satellite; first second-generation ORBCOMM satellite
PMD Propellant management system
PSLV Polar Satellite Launch Vehicle
SAR-Lupe Synthetic Aperture Radar-Lupe; system of
small satellites with a process for enhancing the quality of
radar images
Small GEOs Small geostationary satellites for
telecommunications and multimedia applications
Telematics A system linking telecommunications and IT
TET Technology mule; core element of the national
“On-Orbit Verification of New Techniques and Technolo-
gies” project
WAICO Waving and Coiling Response of Arabidopsis
Roots; biological experiment on board the International
Space Station
Space Systems + Security
OHB-System AG, Bremen, Germany
Payloads + Science
Kayser-Threde GmbH, Munich, Germany
Space International
Carlo Gavazzi Space S.p.A., Milan, Italy
LUXSPACE Sàrl, Betzdorf, Luxembourg
Antwerp Space N.V., Antwerp, Belgium
100 %
100 % 100 %
100 %
100 % 100 %
74,9 %
100 %
100 %
100 %
100 %
70 %
Glossary
THE GROUP
OHB Technology AG is a European aerospace and technology group and one of the most important independent forces in European aerospace. With almost 30 years of experience in developing and executing innovative space systems and structures and its range of specific aerospace and telematics products, the OHB Group is superbly positioned to face inter-national competition.
The OHB Group at a glance
Business units and subsidiaries
Space Systems + SecurityThis business unit’s activities encompass satellites, human spaceflight, exploration and security/reconnaissance technolo-gies. It develops and builds low-orbit and geostationary small satellites for science, navigation, communications and earth observation. The human space flight segment includes work on constructing the International Space Station ISS and fitting it out with research equipment. Exploration primarily entails research of outer space. Reconnaissance satellites and broad-band radio transmission of imaging data form the core of the security and reconnaissance activities.
Payloads + Science This business unit specializes in developing and implementing payloads, scientific equipment and devices for aeronautics/aerospace, research institutes and industry. Applications range from earth observation and satellite navigation to scientific payloads for exploration and the ISS as well as technology testing.
Space Transportation InternationalThis business unit comprises and integrates all non-German activities in connection with the construction of micro and mini-satellites and ground segments, human and unmanned space flight systems and scientific payloads.
Space Transportation + Aerospace Structures This business unit is primarily a supplier of key components for aerospace and aviation products and possesses system skills in the antenna and mechatronics segment. Thus, MT Aerospace currently contributes around 10% of the hardware for the Ariane 5 launch vehicle, making it the largest German supplier for this project. In addition, MT Aerospace supplies fresh and waste water tanks primarily for the Airbus fleet and develops and produces components for aircraft.
Telematics + Satellite OperationsThe Telematics business unit develops comprehensive solu-tions for the efficient management of transportation activities. The main focus of its activities is on OEM solutions for commer-cial vehicle producers, applications for government agencies and security organizations as well as geographical information systems and web-based database solutions. This business unit is also responsible for marketing ORBCOMM satellite services across Europe.
Telematics + Satellite Operations
OHB Teledata GmbH, Bremen, Germany
megatel GmbH, Bremen, Germany
Telematic Solutions S.p.A., Milan, Italy
Space Transportation + Aerospace Structures
MT Aerospace AG, Augsburg, Germany
MT Mechatronics GmbH, Mainz, Germany
MT Aerospace Guyane S.A.S., Kourou, French Guiana
MT Aerospace Satellite Products Ltd., Wolverhampton, UK
AGILE Astrorivelatore Gamma ad Immagini Leggero;
Italian astronomic research satellite
AIS Automatic Identification System; radio-based system
for identifying the location and parameters of larger ships
AQAP Allied Quality Assurance Publications; series of
standards developed by NATA from the military standard
for quality assurance systems
ARDS Aerial Reconnaissance Data System; broadband
system for transmitting aerial reconnaissance images
ARTES-7 Long-term ESA plan for developing a European
communications satellite network using the latest laser
communications.
ARTES-11 Long-term ESA plan for the development of
small geostationary telecommunications satellites
BMBVS German Federal Ministry of Traffic, Construction
and Urban Development
ATV Automated Transfer Vehicle; unmanned space
transporter for supply flights to the ISS
BMVg German Federal Ministry of Defense
BMWi German Federal Ministry of Economics and
Technology
BWB German Federal Office of Defense Technology and
Procurement
CFK Carbon fiber-reinforced plastic
CNES Centre national d‘études spatiales; French space
agency
COLUMBUS Name of the European module of the
International Space Station
DBO Defined benefit obligation
DGA Délégué général pour l’armement; French military
procurement agency
DLR Deutsches Zentrum für Luft- und Raumfahrt;
German Space Agency
D-WERDAS Demonstrator- Wide-range relay-based data
transmission system
EBIT Earnings before interest and taxes
EBITDA Earnings before interest, taxes, depreciation and
amortization
EBT Earnings before taxes
EDRS European Data Relay System; system for
implementing a data network in space using optical
satellite communications
EnMAP Environmental Mapping and Analysis Program;
satellite for hyperspectral Earth observation
EpM European Physiology Modules; human-physiology
research payload for the ISS Columbus module
EPS Earnings per share
ESA European Space Agency
E-SGA German acronym for Europeanization of satellite-
based reconnaissance
ETC European Transport Carrier; transport rack for
sensitive scientific experiments on board the European
Columbus module of the ISS
ExoMars ESA Mars exploration mission
R+D Research and development
FM Flight model
FSLGS French SAR-Lupe Ground Segment- configuration
of French Helios ground satellite to receive SAR-Lupe
reconnaissance images
Galileo European global satellite-based navigation
system; Galileo is a trade mark owned by the European
Commission. The GALILEO program is a joint initiative of
the European Union and the European Space Agency ESA.
GIS Geographic information system
GMES European initiative for the global monitoring for
environment and security
GRADFLEX GRAdient Driven FLuctuations EXperiment
IAS International Accounting Standards
IFRS International Financial Reporting Standards
IOT Industrial Operator Team; team for preparing the
start-up of the Columbus module for the ISS
ISS International Space Station
KSA Strategic reconnaissance command of the German
federal armed forces; user of the SAR-Lupe system
LEO Low earth orbit
MTG Meteosat Third Generation; program to develop,
build and launch third-generation weather satellites
NASA National Aeronautics and Space Administration;
US space agency
OEM Original equipment manufacturer
ORBCOMM CDS ORBCOMM Concept Demonstration
Satellite; first second-generation ORBCOMM satellite
PMD Propellant management system
PSLV Polar Satellite Launch Vehicle
SAR-Lupe Synthetic Aperture Radar-Lupe; system of
small satellites with a process for enhancing the quality of
radar images
Small GEOs Small geostationary satellites for
telecommunications and multimedia applications
Telematics A system linking telecommunications and IT
TET Technology mule; core element of the national
“On-Orbit Verification of New Techniques and Technolo-
gies” project
WAICO Waving and Coiling Response of Arabidopsis
Roots; biological experiment on board the International
Space Station
Space Systems + Security
OHB-System AG, Bremen, Germany
Payloads + Science
Kayser-Threde GmbH, Munich, Germany
Space International
Carlo Gavazzi Space S.p.A., Milan, Italy
LUXSPACE Sàrl, Betzdorf, Luxembourg
Antwerp Space N.V., Antwerp, Belgium
OHBTechnologyAG|2010
0202 Lettertotheshareholders
Prof. Dott. Ing. h.c. Manfred Fuchs,
born1938,degreeinengineering,MemberoftheManagementBoardsince2002,COOSpaceTechnologyofOHBTechnologyAG
Marco R. Fuchs,
bornin1962,attorney,MemberoftheManagementBoardsince2000,ChiefExecutiveOfficerofOHBTechnologyAG
Ulrich Schulz,
bornin1951,degreeinengineering,MemberoftheManagementBoardsince2000,COOTelematicsofOHBTechnologyAG
OHBTechnologyAG|2010
03Lettertotheshareholders
2010wasthemostsuccessfulyearintheOHBGroup’shistory,whichspansalmost30years.Thefiguresachievedfor2010confirmthisoutstandingperformanceandourongoinggrowthtrajectory,withtotalrevenuesrisingtoaroundEUR453millionin2010(previousyearEUR322million)accompaniedbyanincreaseinEBITtoEUR22.7million(previousyearEUR20.8million).AtacurrentfigureofaroundEUR1.2billion,theorderbackloghasexceededtheonebillionmarkand,withtheawardofthecontractfortheMeteosatThirdGeneration(MTG)program,willreachanewrecordofaroundEUR2billion.Withtheseamplyfilledorderbooks,ourcontinuedgrowthandongoingstrongcapacityutilizationareassuredoverthenextfewyears.
Space Systems + SecurityOHB-SystemAGiscurrentlytheGroup’smaingrowthdriver.Theawardofthecontractforthedevelopmentandconstructionofthefirst14satellitesfortheGalileo*EuropeansatellitenavigationsysteminJanuary2010aswellasthedecisionmadebyEUMETSATandESAinNovember2010infavorofthesyndicatecomprisingThalesAleniaSpaceandOHB-SystemforthedeliveryoftheMTGsatellitestestifytotheroleplayedbytheCompanyasasystemleaderforEuropeansatelliteprograms.AsESA’sthirdlargesystemintegrator(LSI),OHB-SystemhasbeenabletocompeteonthesamefootingwithleadingcompaniesinEurope.Spurredbythesesuccesses,wehavetakenalargestepforwardinoureffortstoachieveourgoalofbroadeningtherolewhichweplayintele-communications,navigation,earthobservation,explorationandscientificresearch.
Payloads + Science2010wasalsoayearfullofsuccessforKayser-ThredeGmbH.WorkingincollaborationwithThalesandOHB,Kayser-ThredewasselectedastheprimesupplierofhighlycomplexpayloadsfortwoMTGsoundersatellites.Atthesametime,theTET-1technologytestingproject,whichKayser-Thredeisconductingastheleadmanager,hasreceivedflightapprovalafterthesuccessfulcom-pletionofthetestcampaignandisthereforetobelaunchedinthenearfuture.WiththesemilestonesandtheprogressbeingmadeontheGermanhyperspectralearthobservationsatelliteEnMAP,Kayser-ThredeiscontributingtotheGroupcrucialtechnologiesandcapabilitiesintheareaofhighlycomplexpayloads,thuspavingtheroadforcontinuedgrowth.
Space Transportation InternationalComprisingallnon-GermanGroupactivities,theSpaceInternationalbusinessunitcontinuedtogrowlastyear.InJuly2010,OHBTechnologyAGacquiredallofthecapitalofBelgianspacetech-nologycompanyThalesAleniaSpaceAntwerp.RenamedAntwerpSpaceN.V.aftertheacquisition,thiscompanyspecializesindevelopingandproducingequipmentforgroundstations,particularlyfortelecommunicationsandearthobservationapplicationsandisassemblingthenetworklinkingthemissionandcontrolcentersofthefutureGalileo*Europeansatellitenavigationsystem.TherangeofproductsacquiredthroughthistransactionwillreinforcetheOHBGroup’sgroundsegmentactivities.Inthisway,OHBTechnologyAGissystematicallycontinuingitsgrowthstrategyintheESAcountries.BelgiumisthefifthlargestfinancialcontributortoESAandthereforeakeycountryforfutureESAprograms.
Dearshareholders,customersandbusinessassociates,
*seeGlossary
OHBTechnologyAG|2010
04 Lettertotheshareholders
Space Transportation + Aerospace StructuresIntheyearunderreview,MTAerospacewasabletolookbackonsixsuccessfulAriane5launcheswithatotalof12satellitemissions.With42consecutivesuccessfullaunches,Ariane5isthemostreliablevehicleforspacemissions.AsthelargestGermansupplierofcomponents,MTAerospaceplaysanimportantroleintheArianeprogramandwillcontinuetodemonstratethereliabilityandefficiencyofitsproductsinfuturelaunchesoftheAriane5.However,thisOHBGroupbusinessunitisalsoexpandingintheaviationsegment.Atthebeginningof2011,OHBTechnologyAG(70percent)andApolloCapitalPartnersGmbH(30percent)tookovertheBavarianenginecomponentssupplierAerotechPeissenbergGmbH&CoKGtogetherwithitssubsidiariesinFranceandtheCzechRepublicfromtheformerownerRobertDrosten.AerotechPeissenbergproducessensitivecomponentsforaircraftpropulsionsystemsandindustrialgasturbines.Withthisstrategicacquisition,theOHBGroupisextendingitsaviationactivitiesforthepurposeofimprovingitspositioninnationalandinternationalaviationbusinessandofharnessingnewmarketpotential.
Telematics + Satellite OperationsAlthoughthefavorablegeneraleconomicconditionswerealsoreflectedinthecommercialvehiclemarketin2010,thisdidnotyetresultinanyrecoveryinsalesoftelematicssystems.TooffsetflatnewbusinessinthecommercialsegmentandtoreducethedependenceoftelematicsbusinessoncommercialvehicleOEMs,OHBTeledataenteredthemarketforbatterymanagementsystemsandwillbedevelopingtheseactivitiesintoacoreskill.Ithasalreadygeneratedbusinessinthemarinesectorandforautomotiveelectricdrivesinhybridvehicles.Inaddition,OHBTeledatahastriggeredhardwaredevelopmentsinon-boardcomputersandnavigationsystemsand,ifjustifiedbydemand,willbeabletolaunchtheseinthemarketinthefuture.
OHBTechnologyAG|2010
05Lettertotheshareholders
Stock performanceSpurredinparticularbythecontractawardedtoOHB-Systemfortheconstructionofthefirst14Galileo*satellites,theCompany’sstockperformedextremelywellparticularlyinthefirsthalfoftheyear.Infact,itroseby48percentin2010,closingtheyearatEUR16.60.Thiswasaccompaniedbyanincreaseinaveragedailytradingvolumesfromaround15,000sharesinthepreviousyeartoover48,000in2010,thusprovidingfurtherproofoftheappealofourstock.
Looking forward to 2011TheOHBGrouphasenteredtheEuropeanarenaandisnowfacinguptothechallengesarisingfromsystemleadershipinmajorEuropeanspaceprograms.WewanttoharnesstheresultantopportunitiesfortheentireGroupsothatweareabletogrowonasteadyandenduringbasis.Thisyear,wewillbeparticularlyfocusingonenhancingthequalityofalltheworkperformedinourprojects.WeexpecttotalrevenuestorisetoaroundEUR600million,withEBITalsocontinuingtogrowtoapprox.EUR27million.Atthesametime,particularattentionwillbepaidtoensuringthesuccessfulimplementationofthemajorsatelliteprogramsGalileo*,MTG,SGEOandEnMap.WewillalsobecloselyinvolvedinthefurtherdevelopmentofAriane5.Moreover,withtheupcomingEDRS(EuropeanDataRelaySystem)andDEOS(GermanOrbitalServicingMission)projects,majorcontractawarddecisionsinthetelecommunicationsandroboticssegmentsarescheduledfor2011.
IwouldliketotakethisopportunitytothankallourstaffatalloftheGroup’scompaniesfortheirservices,dedicationandinnovativeideas.Ifitwerenotforthem,wewouldnothaveachievedlastyear’ssuccesses.AllbusinessunitshavecontributedtotheGroup’sgrowthandcompetitiveness.ItiswiththissamecommitmentandenthusiasmthatwewillbejoiningtogetherinoureffortstoensurethattheOHBGroupremainsaEuropeansuccessstory.
Bremen,March16,2011
MarcoR.FuchsCEO
*seeGlossary
OHBTechnologyAG|2010
06
2010wasayearofparticularimportancefortheOHBTechnologyGroup.InadditiontothecontractfortheGalileo*project,whichwasawardedinJanuaryandprovidesforOHBtobuildthefirst14satellitesfortheEuropeansatellitenavigationsystemastheprimecontractor,theCompanypassedafurthermilestonewhenitreceivedthecontractforthedevelopmentandproductionofthethird-generationMeteosatsatellitesinNovember2010.
OHBTechnologyAGtogetherwithitsSupervisoryBoardandManagementBoardiscommittedtogoodandresponsiblecorporategovernance.Thiscommitmentissharedbythemajorityshare-holdersandtheGroup’sentiremanagement.Inadditiontotheobservanceofhighstatutoryandethicalstandardsbyemployeeswiththeirkeensenseofresponsibility,OHBattachesparticularimportancetoenvironmentalprotection,thegreatestpossiblequalityandthesafety,healthandequalityofitsemployees.Oneobjectiveforthecomingyearistointerestagreaterproportionofwomenintheexcitingandinterestingcareeropportunitiesawaitingtheminaerospace,asectorwhichisstillheavilydominatedbymen.Wewanttogainandrecruitmoregirlsandwomenfortechnicalcareers.Inthisrespect,thenowtraditional“Girls’Day”,whichtheGrouporganizes,merelymarksthebeginningofawholeseriesofactivitiesandmeasuresaimedatarousingwomen’sinterestinacareerinthisindustry.
Dearshareholders,
Christa Fuchs,
ChairwomanoftheSupervisoryBoardofOHBTechnologyAG,MemberoftheSupervisoryBoardsince2002,bornin1938,businesswoman,ManagingshareholderofVOLPAIABeteiligungsGmbH
Prof. Dr.-Ing. Hans J. Rath,
DeputychairmanoftheSupervisoryBoard,MemberoftheSupervisoryBoardsince2001,bornin1947,engineer,ProfessorofMechanicsandFluidMechanicsattheUniversityofBremen,ProductionTechnologyFaculty,ManagingdirectorofZARMFallturmBetriebsgesellschaftmbH
Prof. Heinz Stoewer,
MemberoftheSupervisoryBoardsince2005,bornin1940,engineer,M.Sc.,Professorem.SpaceSystemsEngineering,TechnicalUniversityofDelft,Netherlands,ManagingdirectorofSpaceAssociatesGmbH
ReportoftheSupervisoryBoard
*seeGlossary
OHBTechnologyAG|2010
07
Ongoing dialog with the Management BoardDuringtheyearunderreview,theSupervisoryBoardperformeditsdutieswithgreatcareinaccordancewiththeapplicablestatutoryrequirements,theprovisionsoftheCompany’sbylawsanditsrulesofconduct.TheSupervisoryBoardisresponsibleforoverseeingtheManagementBoardbymonitoringitsactivitiesandexertinginfluence.ThislatterfunctionplaysadecisiveroleintheCompany’ssuccessnotonlyintheshorttermbutalsoonamediumandlong-termbasis.
TheManagementBoardbriefedtheSupervisoryBoardregularlyandcomprehensivelyonorderintake,totalrevenues,earningsandcapacityutilizationatOHBTechnologyAGaswellaswithintheindividualbusinessunits.TheManagementBoardansweredalloftheSupervisoryBoard’squestionsinfullandcomprehensively.TheSupervisoryBoardsoughtandreceivedongoinginformationoncorporateplanning,strategicdevelopmentandthemainacquisitionprojectsandadvisedtheManagementBoardonindividualmattersrelatingtocorporateacquisitionsandprojecttenders.
Meetings of the Supervisory BoardTheSupervisoryBoardheldfivescheduledmeetingsatwhichitdeliberatedontheGroup’sper-formance,thereportssubmittedbytheManagementBoard,thestatusofpendingtenderprocessesandplannedacquisitionsaswellastheadjustedcorporatebudgets.OrdinarymeetingsoftheSupervisoryBoardin2010wereheldonMarch17,May19,July8andNovember18.Inaddition,theSupervisoryBoardmetonDecember17todiscusstheManagementBoard’scurrentreportonthecorporatebudgetfor2011and2012.
ThemeetingheldonMarch17,2010waschieflydevotedtotheManagementBoard’sreportontheGroup’sperformanceintheperiodcommencingJanuary1,2009andendingDecember31,2009,thecurrentstateofbusinessaswellasforecastsfor2010.Forthispurpose,theManagementBoardsubmittedtheannualfinancialstatements,theconsolidatedfinancialstatementsandthemanagementreportsforOHBTechnologyAGandtheGroupfor2009.ThestatutoryauditorsfromBDOAGWirtschaftsprüfungsgesellschaft,Hamburg,personallypresentedtheauditreportandelaboratedonitatthismeeting.
AtthemeetingheldonMay19,2010,theManagementBoardreportedontheGroup’sbusinessperformanceinthefirstquarterof2010aswellasthecurrentstateofbusiness.AfurtheritemontheagendaconcernedtheManagementBoard’sstatusreportontheplannedacquisitionofThalesAleniaSpaceAntwerpN.V.andtheGroup’s2010strategyworkshop.Inaddition,anewcodeofconductfortheManagementBoardwasapprovedandadopted.
ReportoftheSupervisoryBoard
OHBTechnologyAG|2010
08 ReportoftheSupervisoryBoard
ThemainmattersdealtwithatthemeetingheldonJuly8,2010concernedtherequestforpro-posalsfortheMeteosatThirdGeneration(MTG)projectaswellastheresolutionapprovingtheacquisitionofThalesAleniaSpaceAntwerpN.V.ThisacquisitionwillstrengthenthefifthbusinessunitSpaceInternational,whichwasestablishedinthepreviousyear.FurthermattersdealtwithatthismeetingincludedtheManagementBoard’sreportontheGroup’sbusinessperformanceinthefirsthalfof2010andthecurrentstateofbusiness.Inaddition,theplannedinfrastructureprojectsinBremenandMunichwerepresentedanddiscussed.
AtthemeetingheldonNovember18,2010,theManagementBoardreportedontheGroup’sbusi-nessperformanceinthefirstninemonthsof2010,thecurrentstateofbusinessaswellasbusi-nessexpectationsfortheyearasawhole.Thereviewoftheyearwassupplementedwithareportoncurrentinvestorrelationshipactivities.TheManagementBoardandtheSupervisoryBoardjointlyissuedthedeclarationofconformitytotheGermanCorporateGovernanceCodestipulatedbySection161oftheStockCorporationAct.
HeldshortlybeforetheendoftheyearonDecember18,2010,theSupervisoryBoard’sfifthmeet-ingdealtprimarilywiththeManagementBoard’sreportontheupdatedcorporatebudgetfor2011and2012.Theassumptionsunderlyingthebudgetandpossiblescenariosforthenexttwoyearswerediscussedcomprehensivelyandingreatdetail.
Corporate governanceTheManagementBoardalsosubmittedacorporategovernancereporttotheSupervisoryBoardinaccordancewithSection3.10oftheGermanCorporateGovernanceCodeinconnectionwiththecorporategovernancedeclarationstipulatedbySection289aoftheGermanCommercialCode.ThecorporategovernancedeclarationcanbeexaminedatOHBTechnologyAG’swebsite.TheSupervisoryBoardregularlydiscussedtheapplicationandfurtherdevelopmentoftheprinciplesofcorporategovernancewithintheCompany.OnNovember18,2010,theManagementBoardandtheSupervisoryBoardissuedanupdateddeclarationofconformityinaccordancewithSection161oftheStockCorporationActandmadethisavailablepermanentlytoshareholdersattheCompany’swebsite.
Approval of the annual financial statementsTheannualfinancialstatements,theconsolidatedfinancialstatementsandtherelatedmanage-mentreportsofOHBTechnologyAGfor2010wereauditedbyBDOAGWirtschaftsprüfungs-gesellschaft,Hamburg,andissuedwithanunqualifiedauditor’sreport.
ThesedocumentsweremadeavailabletoallmembersoftheSupervisoryBoardinsufficienttime.AttheSupervisoryBoard’sbalancesheetmeetingheldonMarch15,2011,thesedocumentswerediscussedinthepresenceandwiththeinvolvementofthestatutoryauditor.
OHBTechnologyAG|2010
09ReportoftheSupervisoryBoard
TheSupervisoryBoarddidnotraiseanyobjectionsandacceptedtheresultsoftheaudit.Itapprovedtheconsolidatedfinancialstatements,asaresultofwhichtheyarenowdeemedtohavebeendulyadopted.TheSupervisoryBoardconcurredwiththeManagementBoard’sproposalfortheallocationoftheCompany’sunappropriatedsurplus.TherelatedpartiesreportpreparedbytheManagementBoardwasauditedbyBDOAGWirtschaftsprüfungsgesellschaft,Hamburg,andgiventhefollowingunqualifiedauditcertificate:
“Havingexaminedandassessedtherelatedpartiesreportinaccordancewithourduties,weherebyconfirmthat(1)theactualdisclosuresofthereportarecorrectand(2)theCompanydidnotpayinordinatelyhighamountsrelatingtothetransactionsmentionedinthereport.”
TheSupervisoryBoardraisesnoobjectionsfollowingitsownexaminationandthereforeapprovestheManagementBoard’srelatedpartiesreport.
TheSupervisoryBoardwishestothanktheManagementBoard,allemployeesandtheemployeerepresentativesfortheworkperformed.TheyhaveoncemoremadeacontributiontoaverysuccessfulyearforOHBTechnologyAG.
Bremen,March15,2011
ChristaFuchsChairwomanoftheSupervisoryBoard
OHBTechnologyAG|2010
10 Interview
OHBTechnologyAG|2010
“WithoursitesintheGermanspacetechnologycentersofBremenandBavaria,wewellandtrulyfigureamongthesectorheavyweights.”
11Interview
“oHB–committedtoenduringsuccess”
Overthepastfewyears,OHBTechnologyAGtogetherwithitssubsidiarieshasjoinedthevanguardoftheEuropeanspaceindustry.Itssystemsandtechnologiesaregeneratingnewimpetusforgrowthmarketssuchassatellitebasedcommunicationsandnavigationandopeningupnewperspectivesforearthobservationandscientificresearch.Nowmorethanever,thename“OHB”typifiestheenduringsuccessofamidsizeGermancompany.WeinterviewedtheCompany’sCEOMarcoR.FuchstofindoutwhereOHBcurrentlyseesitself.
In2011,OHBTechnologyAGwillbecelebratingthetenthanniversaryofitsstockmarketflotation.Lookingbackonthisperiod,howdoyouthinkOHBhasdevelopedoverthesetenyearsandwhereisittoday?Tostartoff,Ithinkit’sfairtosaythatwehavemadeenormousprogressineveryrespect.Thisisnotonlytrueineconomicterms,asreflectedinourrevenuesandearningsbutalsoappliestoourstrategicalignment,theexpertisewhichwehaveamassedassystemleaders,ourenterprisebaseand,flowingfromthis,therolewhichweplayinthespaceindustryasawhole.
Whatdoesthisspecificallymean?Theeconomicaspectsareclearlyreflectedinourfigures.Whenwewentpublicin2001,OHBTeledatahadtotalrevenuesofaroundEUR15million.OHB-SystemAG,whichwasnotyetpartofthelistedcompanyatthatstage,generatedafigureofaroundEUR27million,makingacombinedtotalofsomeEUR
42million.Sincethen,wehavegrownmorethanten-foldbothorganicallyandasaresultofaseriesofwiseacquisitions.
Atthesametime,wehavealsobroadenedourenterprisebase.WithoursitesintheGermanspacetechnologycentersofBremenandBavariaandadditionallyalsoinotherEuropeancountries,wewellandtrulyfigureamongthesectorheavy-weights.Thus,ouremployeenumbershaverisenfromaround250atOHB-SystemandOHBTeledatain2001toacurrenttotalofsome2,200includingthestaffatAerotechPeissenberg.Mostofthesearehighlyqualifiedengineers.
Howdoyouviewthisdevelopmentfromthestanceofashareholder?Ithinkthatwehaveeveryreasontobesatisfiedwiththeperfor-manceofourstockprice,whichadvancedataverygratifyingratelastyearinparticular.OneofthereasonsforthisisthatwehaverepeatedlyprevailedinimportantinternationalbiddingprocessessuchasGalileo*andMTG,thusdemonstratingourcompetitiveness.Wehaveveryrespectableorderlevelsandgenerallyfeelverywellpoisedtoembracethefuture.Atthisstage,weexpecttobeabletoreportfurthergrowthintotalrevenuesandearningsin2011.
Towhatfactorsdoyouattributeyourextraordinarygrowthstory?Thisisdoubtlessnotduetoasinglefactorbutrathertheinter-playofmultipleaspects.Itstartswiththegoalwhichwehavesetourselves,namelytoofferthebestsolutionsforourmar-
*seeGlossary
OHBTechnologyAG|2010
12 Interview
ketsandtobesuccessfulwiththebestpossibletechnologyataffordableprices.Thefactthatwearerepeatedlyabletoprovideserviceswhichmeetthisgoaliscloselyrelatedtoourorganiccorporatestructureandculture,whichisnotnecessar-ilytypicalofthissector.
Wouldyoucaretoexplainthis?Spacetechnologymeansthinkingintermsofsystems.Andinthelightofourgoal,wealsoseeourselvesasatypeofsystem.Itcanperhapsbemostappropriatelysummedupasthe“OHBprinciple”.Yet,itisaprinciplewhichrestsonseveraldifferentpillars.Foronething,therearetheshortdecision-makingroutesandtheflexibilityofaleanmid-sizedfamily-runcom-panywithadecentralizedcorporatestructure.Despiteourgrowth,wehaveretainedthischaracteristicandnurtureitveryvigilantly.Foranother,wehavegrownbothorganicallyfromwithinandasaresultofaseriesofsuccessfulacquisitions.Inthisway,wehavegeneratedvolumeandalsogainedadditionalskillswhichhaveenhancedourcompetitiveness.Anotherkeyelementisthewisenetworkingofoursubsidiaries’expertiseand–relatedtothis–theconsciouscommitmenttoexternalandinternalcompetition.WearecompetitivenotonlyinthemarketbutalsowithintheGroupandencourageaconstantcompetitionofideas.Ultimately,weareconvincedthatthisben-efitsnotonlyusbut,moreparticularly,ourcustomersaswell.
HowdoyouplantoshapetheGroup’sfuturegrowth?Morethanever,spacetechnologyisabeaconEuropeanindus-tryandweareideallypositionedfortopperformanceinthisenvironment.Wefocusonfirst-classsatellitesystemsaswellasparticipatinginthedevelopmentofviablelaunchvehicles.Tothisend,wewillcontinuetogrowendogenouslybutalsoexe-cutestrategicallysensibleacquisitionsshouldtheopportunitypresentitself.Weexpecttoreachannualsalesofonebillioneurosby2020.
Areyoualsopursuingaglobalgrowthstrategy?WithprojectssuchasSAR-Lupe,SGEOandGalileo*toitsname,OHBenjoysnotonlyEuropean-wideesteembutisalsocreatingaperspectiveforglobalgrowth.Dayforday,wedem-onstratethatweknowhowtocombinetechnology,qualityandpricetooptimumeffectforthebenefitofourcustomersonbothalargeandsmallscale.Forthisreason,itisonlylogicalthatwerepeatedlyengageinpromisingtalksonagloballevel.Thatsaid,weseetheEuropeanmarketsascontinuingtoprovidethemainunderpinningsforourgrowth.
InmidJanuary2011,youhadtorelievetheCEOofyoursubsidiaryOHBSystemAGofhisduties.Thatwasunfortunatelynecessaryaftertherecordsofaconver-sationbetweenhimanddiplomatsattheUSembassyinBerlinenteredthepublicdomainviaareportinaNorwegiandaily.Allofasudden,wehadveryconflictingreportsofwhathadactu-allyhappened.However,wehadnochoiceifweweretoprotectourviabilityasaEuropeanpartnerandourreputationingen-eral.WesawnoalternativetothissteptoavertharmfromtheCompany.Asaresult,IhavenowalsoassumedthepositionofCEOofOHB-SystemAGonaninterimbasis.I’msharingthesetaskswithmyfellowBoardmembersDr.FritzMerkleandFrankNegrettiinanarrangementwhichisworkingverywell.
Afterclearlyconcentratingonspacetechnologyoverthepastfewyears,yourecentlyannouncedanacquisitionintheaviationsectorwiththetakeoverofAerotechPeissenberg.Whatwasthereasonforthisstep?Wearestillcontinuingtofocusonspacetechnology.However,IthinkthatAerotechPeissenbergwasawisemoveasitsupple-mentsthestillrelativesmallaviationactivitiesatMTAerospace.TheformerMTUfacilityinPeissenbergoffersusagoodpositionasasupplierofcomponentsforaircraftengines,allowingustoreinforceourproductandfabricationactivities.Themanage-
“Weareideallypositionedfortopperformanceinthisenvironment.”
*seeGlossary
OHBTechnologyAG|2010
13Interview
March 2001:FlotationofthetelematicscompanyOHBTeledataAG,aspin-offfromOHB-SystemAG(“NeuerMarkt”Frankfurt/M.).Issuedcapital:EUR7,464,048
December 2001:OHB-SystemwasawardedthecontractfortheSAR-Lupereconnaissancesystem.AtaroundEUR300million,thiswasthelargestsinglecontractreceivedbytheOHBGrouptodate.
July 2002:Afterthenon-cashcapitalcontributionofOHB-SystemAGtoOHBTeledataAG,thenewOHBshareswerelistedforthefirsttime.Admittedissuedcapital:EUR14,928,096.TheCompanywasrenamedOHBTechnologyAGinitscapacityastheholding/parentcompany.
December 2004:TheFrankfurtstockexchangelaunchedthenewGEXindexinJanuary2005totracktheperformanceofowner-dominatedsmallandmid-caps.OHBTechnologyAGwasincludedinthisindex.
June 2005:TheOHBGroupacquiredMTAerospaceAG(for-merlyMANTechnologieAG),whichprimarilysuppliescom-ponentsfortheEuropeanAriane5launchvehicleandtanksystemsfortheaviationindustry.
August 2007:TheacquisitionofMunich-basedspacetechnol-ogycompanyKayser-ThredeGmbHstrengthenedtheOHBGroup’spositionasthesecondspacetechnologygroupin
Germany,particularlywithrespecttopayloadsandscientificapparatus.
February 2009:MTAerospaceAGsignedlong-termdeliverycontractsforcomponentsforafurther35Ariane5launchvehicles.Combinedtotalvalue:EUR370million.
August 2009:OHBTechnologyAGacquiredCarloGavazziSpaceS.p.A.,Milan,thusextendingitspositionwithEuropeanprograms.ThesharecapitalwasincreasedtoEUR17,468,096withtheissueof2,540,000newbearershares.
January 2010:OHB-SystemAGandESAsignedtheGalileo*contract.OHB-Systemwasnamedprimecontractorfor14satellitesandisresponsibleinthiscapacityfordevelopingandproducingthesatellitebus(contractvolumeofaroundEUR566million).
November 2010:OHB-SystemAGandThalesAleniaSpacesignedthefirstsub-contractintheMTGproject.Onceithasbeenawardedinfull,thetotalvalueofthecontractwillcometoaroundEUR750millionforOHB.
February 2011: TheOHBGroupacquiredOHBAerotechPeis-senberg,asupplierofcomponentsforaircraftengines,whichsupplementsMTAerospace’saircraftcomponentsbusiness.ThisacquisitionstrengthensitsproductactivitiesandreducesitsdependencyonAriane-5business.
oHBcelebratingthe10thanniversaryofitsstock-marketflotationg
mentatMTconsideredthistobeverypromising,sowe’llseeifthey’reright.
Spacetechnologyisstillconsideredtobeaprojectdrivennichemarket.Doyouadditionallyseeanyscopeforeconomiesofscale?Ontheonehand,that’strue.However,theroleplayedbyspacetechnologyasabeaconEuropeanindustryhasgrown,asImen-tionedbefore.Inanycase,itwillremaininterestingforustocontinuepositioningourselvesinthismarketasacompetitiveproviderofquality.Oursystemsandtechnologiesaregenerat-ingnewimpetusforgrowthmarketssuchassatellite-basedcommunicationsandnavigation,openingnewperspectivesforearthobservationandscientificresearch.Itisquitepossiblethatopportunitieswillarisefortransferringthesetechnologiesandexpertisetocommercialapplications.
Thereisashortageofhighlyqualifiedengineers–towhatextentisOHBaffectedbythis?
Fortunately,wehavenotyethadtofacethisproblemandIamconfidentthatthisishowthingswillremaininthefuture.Spacetechnologyexertsagreatfascination,encouragingmanyhighlyqualifiedengineerswithapassionforthisfieldtosubmitunsolicitedapplications.Applicants–manyofwhomarewomen–don’tjustcomefromGermanybutfromallpartsofEurope.
Howdoyoumanagetonurturethe“OHBprinciple”giventheGroup’slargerdimensionsandinternationalfootprint?Weknowwherewecamefromandwhatmakesusstrong.Accordingly,thedirectioninwhichweareheadedisclear.ThebasisofasuccessfulfutureforOHBcontinuestobederivedfromtheestablishedvaluesofadynamicfamily-runmid-sizeGermancompany.Weconsidereffortstonurtureandenhancethesevalues–the“OHBprinciple”–inournowlargerandstillgrowingdimensionstobeacoremanagementtaskwithintheGroup.
*seeGlossary
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Highlights201014
HiGHliGHts2010
2010wasayearoffurthergrowthforOHBTechnologyAG.Herearethemaineventsoftheyear.
OHBTechnologyAG|2010
16 Highlights2010
2010ataglance
January2010
OHB-System and SSTLawardedcon-tractfortheconstructionof14Galileonavigationsatellites
TheCommissionerofTransportandVicePresidentoftheEuro-peanUnion,AntonioTajani,announcedonJanuary7,2010thatthesyndicatecomprisingOHB-SystemAGandSurreySatelliteTechnologyLtd.(SSTL)hadbeenselectedtobuildandtest14satellitesfortheEU-fundedsatellitenavigationsystemGalileo*.ActingwiththesupportoftheEuropeanSpaceAgencyESA,theCommissionthuscompletedakeystageinthebiddingprocess,whichhadbeenongoingsinceSeptember2008.ThecontractworthEUR566millionwassignedonJanuary26,2010.
Asaresultofthisdecision,OHB-Systemwillbeassumingtheroleofprimecontractorforthefabricationofthe14satellitesandissimultaneouslyresponsiblefordevelopingthesatellitebusandfortheoverallintegrationofthesatellites.SSTLwillbedevelopingandconstructingthenavigationpayloadandaddi-tionallyassistingOHBwiththefinalassemblyofthesatellites.The14satelliteswillbeintegratedinBremen.
Intheconstructionofthesatellites,bothpartnerswillbeabletoharnessthedecadesofexperiencewhichtheyhaveamassed.Notleastofall,OHB-SystemsuccessfullybuiltandlaunchedtheGermanSAR-Luperadarreconnaissancesystem,anarrayoffiveidenticalsatellites,ontimeandwithinbudget.SSTLheldprimaryresponsibilityforthesuccessfulconstructionandtest-ingofthefirstGalileo*satellite,GIOVEA,andthedevelopmentandassemblyoftheRapidEyeconstellation,whichalsocom-prisesfivesatellites.
TheEuropeanCommissionsplittheinvitationforproposalsfortheentiresystemintosixsegments.OHBandSSTLjointlysub-mittedbidsforthe“satellite”segment,i.e.thedevelopment,constructionandtestingofupto32satellitesforwhichinvita-tionsforproposalshadbeenissued.Thecontractawardentailsaninitialworkpackageof14satellites,withfurtherpackagestobeawardedinafuturebiddingprocess.
Theothersegmentsofthesystemare“Systemsupport”,“Groundmission”,“Groundcontrol”,“Operations”and“Launchservices”.
ReneOosterlinck,ESA,andBerrySmutny,OHB,signingthecontract(bottom);top:animationofaGalileo*satellite,preliminary
testingofGalileo*subsystemsatOHBSysteminBremen
*seeGlossary
TheGalileo*systemcomprisesupto32satellitesinthreeorbitalpaths.Theaverage
altitudestandsataround24,000km
*seeGlossary
OHBTechnologyAG|2010
18 Highlights2010
February2010
OHB-System: Space Shuttle Endeavour transportsEuropeanmodules“Node3”and“Cupola”totheISS
At10:14hoursCETonFebruary8,theSpaceShuttle“Endeavour”liftedoffinamissiontotransportthetwoEuropeanmodules“Node-3”and“Cupola”totheInternationalSpaceStationISS.ThesetwomodulesmarkthecompletionofEurope’scontribu-tiontothemultinationalspacestation.OHB-SystemAG,whichhadalreadybeenmateriallyinvolvedinthedevelopmentandconstructionoftheColumbusresearchmodule,alsoworkedontheimplementationof“Node-3”.ThenodeisoneoftwoEuro-peanstructuresrequiredfortheISS’smodulardesign.UndercontracttoThalesAleniaSpace,OHB-Systemassembledandintegratedtheentireharnesssystemfor“Node-2”and“Node-3”.OHBhadadditionallydevelopedandassembledthesecond-arystructuresfor“Node-2”.
January2010
MT Aerospacequalifiesworld’slargestoverwrappedsatellitepropellanttankforAlphabus
TheEuropeanSpaceAgencyESAandtheAlphabusJointProjectTeamsuccessfullycompletedthequalificationreviewofoneoftheworld’slargestyetlightestsatellitetankseverbuilt.Devel-opedandmanufacturedbyMTAerospaceofAugsburg,Germany,undercontracttoAstriumSpaceTransportation,Munich,thiscarbon-fiberoverwrappedpropellanttanksetsnewperfor-mancestandardswithanoverallvolumeofupto1925litersandadrymassoflessthan85kg.Thefirstsetoftwoproto-flighttankshadalreadybeensuccessfullyintegratedinthechemicalpropulsionsystemofthenewEuropeanAlphabussatelliteplat-formatThalesAleniaSpaceinCannes,France.
Thismilestonecompleteda5-yeardevelopmentfortheAstrium-ledAlphabuschemicalpropulsionsystemandfortheAlphabusindustrialjointprojectteam(JPT)formedbyAstriumSatellites,Toulouse,andThalesAleniaSpace,Cannes.
TankproductionatMTAerospaceinAugsburg
OHBTechnologyAG|2010
19Highlights2010
February2010
MT AerospacedevelopssteeringflapsandheatshieldfortheEuropeanReentryVehicleIXV
MTAerospacewasawardedafurtherfollow-upcontractforthedevelopmentandconfigurationofsteeringflapsandheatshieldcomponentsfortheEuropeanReentryVehicleIXV.Withaweightofaroundtwotons,theESAtechnologymuleispartoftheFutureLauncherPreparatoryProgram(FLPP),underwhichorbitaltestingistobeconductedin2013toassessthecapabilitiesofEuropeanplanetaryreentrytechnologies.UndercontracttosyndicateleaderThalesAleniaSpaceItalia,Turin,MTAerospaceisdevelopinganddesigningthelight-weightmovablesteeringflaps,whichhavealengthofaround0.8metersandaweightofonly37kgorsoandwillbefittedtotheaftofthevehicle,aswellaskeyelementsoftheheatshieldattachedtothevehicle’srearmadefromapatentedceramiccompositematerialabletoresisthightemperatures.
February2010
Christian WulffvisitsOHB
OnFebruary12,thethenprimeministerofLowerSaxony,ChristianWulff,whohassincebecometheGermanfederalpresident,visitedOHB’sheadofficeinBremen.Duringhisvisit,hewasbriefedonthespacetechnologyandsatelliteprogramsbeingpursuedbyOHBTechnologyAGanditssubsidiaries.ThemanagingshareholdersoftheOHBGroup,ChristaandProf.ManfredFuchs,additionallyprovidedinformationonthecom-pany’shistoryanddevelopment.
lefttoright:MarcoR.Fuchs,ChristianWulff,formerprimeministerofLowerSaxony,ChristaFuchs,Prof.ManfredFuchs
OHBTechnologyAG|2010
Animation:Bringingadecommissionedsatellitebacktotheearth’satmosphere
AnimationofthedockingmaneuverbetweentheDEOSservicesatelliteandtheclient
February2010
OHB-System awardedcontractforgeneralsystemmanagementforthedefinitionphaseoftheDEOSGermanroboticsmission.
TheSpaceAgencyoftheGermanAerospaceCenter(DLR)hasassignedOHB-Systemoverallsystemmanagementforthedefinitionphase(PhaseB)ofafutureGermanOrbitalServicingMission(DEOS).Accordingly,theBremen-basedspacetechnol-ogycompanyassumedsystemresponsibilitywithintheprepa-ratorymissionandproductdefinitionactivities.ThepurposeoftheDEOSprojectistodemonstratethetechnologiesrequiredforafutureoperationalon-orbitservicingsystemfortheunmannedrobot-basedinspection,maintenanceandassemblyoforbitinginfrastructureelementsaswellascontrolledorbitmaneuversandreturnstoearth.DEOSisbeingexecutedbytheDLRSpaceAgencywithfundingprovidedbytheGermanMinis-tryofEconomicsandTechnology.Thegeneral“DEOSPhaseB”projectisdividedintofivesegments,whichhavebeenawardedseparatelytoindividualsystemmanagersinthefollowingareas:1.OverallSystem,2.ServiceSatellitePlatform,3.ClientSatellitePlatform,4.Berthing,DockingandMaintenanceand5.SatelliteApproachandDisposal.
OHB-SystemAGwillberesponsibleforSegment1“Systemmanagementoftheoverallsystem”andistaskedinthiscapac-itywithcoordinatingandmonitoringtheoverallproject,consol-idatingalldesign,engineeringandproductverificationactivi-tiesandthespecificationsofthemissionandtheentiresystemincludingthelauncher,spaceandgroundsegments.
OHBTechnologyAG|2010
21Highlights2010
PreparationsfortheliftoffofaMAXUSrocketattheESRANGElaunchpadinSweden.
February2010
Kayser-ThredeawardedcontractforDEOSsubsystem
Kayser-ThredeGmbHisresponsibleforthedefinitionoftheroboticsystemandtheberthing,dockingandmaintenanceelementsofthemissionwithinSegment4.Thissystemchiefly
comprisestheroboticpay-loadoftheservicesatelliteandismadeupofaroboticarmandadockingmechanismincludingthenecessarysensorsandactuatorsformanipulatingthetargetobject.
March2010
Kayser-Threde celebratessuccessfulcompletionoftheMAXUS-8mission
OnMarch26,aMAXUSresearchvehiclewithalengthof17.5metersandaweightof12.2tonsliftedofffromtheESRANGElaunchpadinnorthernSweden.Itsfourexperimentmodulesconductedresearchonsuchbasicmattersasmicrogravitationbiologyandmaterialsresearchingravity-freeconditions.WithinthisESAmission,Kayser-Thredewasresponsiblefortheservicesystems,theexteriorstructuresandpayloadintegra-tionaswellasforperformingthecorrespondingenvironmentaltests.Oncetheresearchvehiclehadreachedanaltitudeof700kilometers,agood12minuteswereavailableforexperimenta-tioningravity-freeconditions.Kayser-Thredeprovidedlaunchassistanceonsiteandsuppliedthelandinginformationrequiredtorecovertheresearchvehicle.Kayser-Thredehasbeenaprojectpartnersincetheresearchprogram’sinceptionbyprimecontractorAstriumin1991.
OHBTechnologyAG|2010
22 Highlights2010
OHBTeledatacartographicsoftwareisusedtovisualizeandcontrolfixedinstallationssuchasvideocamerasandspecialsensors.Thepositionsandmovementsofmobileunitsfittedwithtrackingmodulesonthelandandseasidearealsovisual-izedusingtheOHBinstallation.TheinstallationwascompletedandhandedovertothecustomerinMarch2010.ThesuccessfulexecutionofthisprojectmarkstheentryintoanewmarketsegmentforOHBTeledata.DeclarationsofintenthavealreadybeenreceivedforfurthersurveillancecentersfortankfarmsinKuwait.
April2010
Evaluation of investment projectsbyLuxSpace
LuxSpacewasawardedacontractbyESAunderthetermsofwhichitistoactasatechnicalagentfortheEuropeanInvest-mentBank(EIB).Inthiscapacityitwillbeverifying20differentprojectsbeingfundedbythebanktodeterminewhetherearthobservation(EO)datacanbeusedforenhancingmonitoringactivitiesandtogenerateEOservicespecificationsonthisbasis.Thisprojectfollowsonfromtheverysuccessfulcomple-tionofapreliminarystudyinwhichthreeinformationprojectswereexecutedfortheEIBandthesteelgroupArcelor-Mittal,respectively.ThisprojectwaslaunchedonApril19.
March2010
Carlo Gavazzi Space: KeymilestonesachievedwithAMSandLARES
InMarch,CarloGavazziSpacesuppliedtwomajorsubsystemsfortheAntimatterSpectrometer(AMS)laboratoryonboardtheInternationalSpaceStationISS.Inaddition,theLARESresearchsatellitesuccessfullycompletedqualificationtesting.Withitssophisticateddeploymentsystem,thesatelliteiscur-rentlybeingintegratedatCGS.ThesatelliteistobeplacedinorbitduringthemaidenvoyageoftheVEGAlaunchvehicleattheendof2011.AspartoftheactivitiesundertheEuropeanAURORAplanetresearchprogram,CGShasenteredintoacon-tractwithESAfortheexecutionofastudyonin-situresourceutilization(ISRU).ThisispartofthecoreAURORAprogram,whichhasbeeninitiatedbyESAtodefineexplorationarchitec-turesandscenariosandtodeveloptechnologiesforexploringMarsandthemoon.
March2010
OHB Teledata:projectC4i–surveil-lancesoftwareforthePortofShuaibainKuwait–successfullycompleted
InNovember2009,OHBTeledatawasawardedacontractfortheintegrationofcartographicsoftwareintheC4icommandandcontrolcenterinShuaiba,Kuwait.ShuaibaisoneofthelargestportsinKuwaitandalsoservesasalogistichubfortheUSArmyinconnectionwith“OperationIraqiFreedom”.ThepurposeofC4iistoensurefullsurveillanceoftheportareafromthelandandseasidetoprotectfacilitiesandcargo.The
IntegrationandtestingofLARESatCGSinMilan
OHBTechnologyAG|2010
ThefirstALMAtelescopeantennaeinstalledatanaltitudeofover5,000metersabovesealevel.Prof.M.Fuchs(l.)andProf.M.Terenghi,ESO(r.)
May2010
MT Mechatronics:VisittotheALMAprojectintheAtacamadesertinChile
InMay2010,themembersoftheManagementBoardandtheSupervisoryBoardofOHBTechnology,OHB-SystemandMTAerospacevisitedtheconstructionsiteoftheinternationalALMAradiotelescopeprojectinNorthChiletoexamineatfirsthandtheintegrationworkbeingperformedbyMTMechatronics.TheALMAprojectistheworld’slargestnetworkofradiotelescopesforexploringspace.OrganizedbythecustomerEuropeanSouthernObservatory(ESO),thevisitalsoincludedinspectionsoftheVLTtelescopeinParanalandtheESOcenterinSangiagodeChile.
OHBTechnologyAG|2010
24 Highlights2010
May2010
OHB-SystemawardedcontractsfortheoperationoftheFrenchSAR-LupegroundstationandtheGermanHELIOSIIgroundstation
OHB-SystemAGwasawardedacontractundertheE-SGApro-gram(EuropeanizationofSatellite-BasedReconnaissance)providingfortheoperationofboththeFrenchgroundstationoftheSAR-LupesystemandtheGermangroundstationoftheHELIOSIIsystem.ThetwocontractshaveacombinedvalueofEUR14.0million.AspartofthebinationalcollaborationbetweenFranceandGermanyintheareaofsatellite-basedreconnaissance,OHB-SystemAGhasimplementedafurtherSAR-LupegroundstationinFrance,allowingtheFrencharmytodirectlyaccessthereconnaissanceinformationcollectedbytheGermanSAR-Luperadarsatellitesystem.Similarly,theGermanfederalarmedforcesareabletoaccesstheimagedatacollectedbythetwoFrenchopticalreconnaissancesatellitesHELIOS2Aand2BviatheGermanHELIOSIIgroundstation.OperationofthetwogroundsystemscommencedinJuly2010.
Integration,testingandartificialdepictionoftheSARLupesystem
OHBTechnologyAG|2010
25Highlights2010
May2010
MT Mechatronicspassesanimportantmilestoneintheassemblyofthe64mradiotelescopeinSardinia
Togetherwithitspartners,MTMechatronicspassedanimpor-tantmilestoneintheconstructionoftheradiotelescopeinSardinia(SRT).Amassivecraneliftedthemainreflector,whichweighs500tonsandhasaheightof64meters,ontotheprevi-ouslyassembled35-meterhighsupportstructureoftheradiotelescope.A1,350tonsLiebherrcrane,whichhadbeentrans-portedtothesiteespeciallyforthispurposebyMammoet,aspecialistinheavy-dutyliftinggear,wasused.TheSardinianradiotelescopehasareflectorsurfacewithanareaof3,000squaremetersmadefromalargenumberofaluminumpanelsandispassivelysetto500μm.Thefullyrevolvingradiotelescopewillhaveatotalweightof3,000tonsonceithasbeencompleted.TheprojectisbeingplannedandbuiltbyMTMechatronicsGmbHastheprimecontractorfortheItalianinstituteINAF(IstitutoNazionalediAstrofisica).ThesiteislocatedroughlyonehournorthofCagliariinsouthernSardinia. AssemblyworkontheradiotelescopeinSardinia
OHBTechnologyAG|2010
26 Highlights2010
May2010
Women at OHB
Moreandmorewomenareoptingforacareerinengineering.AtOHB,numerousfemaleengineershaveembarkedonpromisingcareersandnowformacrucialpartofourteamofexperts.
Althoughtheyarestillsomethingofararityinthisprofession,whichcontinuestobedominatedbymen,ourwomenhaveaveryfavorableexperienceofOHB.Asafamily-runbusiness,OHBcreatesanatmosphereinwhichfemaleemployeesfeelverycomfortable.
WomenaremorethanwelcomeattheCompany.Afterall,ithasinChristaFuchs,OHB’sfounderandthechairwomanofitsSupervisoryBoard,awomanatitshelm.
OHBissupportingtheUniversityofBremen’sthirdsummercampforfemaleengineerstoencouragewomenwhoareinter-estedintechnicalmattersbutareunsureaboutthestudiesandthecareerwhichtheywishtopursuetoconsideracareerinengineering.TherangeofcoursesistargetedatfemalestudentsatalltypesofuniversitiesandotherinterestedspecialistsfrombothinsideandoutsideGermany.
“ouraimistointerestevenmorewomenintheexcitingandinterestingchallengesintheaviationandaerospaceindustry.”
Christa Fuchs,
ChairwomanoftheSupervisoryBoard
ofOHBTechnologyAG
FemaleengineersatOHB
OHBTechnologyAG|2010
27Highlights2010
May2010
First SOFIA flightswithanopenhatch
DevelopedandbuiltundertheleadmanagementofKayser-ThredeandtheformerMANTechnologie(sincerenamedMTAerospaceAG),theuniquetelescope,whichisunrivalledany-whereintheworld,successfullycompleteditsfirst-lightflightinthenightfromMay25toMay26,2010.ThejointDLR/NASASOFIA(StratosphericObservatoryforInfraredAstronomy)projectisanairborneinfraredobservatoryweighing17tonsfittedtotheaftofamodifiedBoeing747SP.Thismarkedanextraordinaryengineeringfeatastheastronomicobservationswereexecutedusingalargetelescopewithanopenhatchtravelingataspeedofaround800km/h.Theroughlyeight-hourflightatanaltitudeofupto11kmallowedinitialimagesofcelestialbodiestobecaptured.
June2010
OngoingactivitiesbyLUXSPACE in satellite-based ship monitoring
Atthemiddleoftheyear,LuxSpacecompletedapreliminarystudyonthedevelopmentofanewpayloadformonitoringships.Thissystemtracksshippositionsbyrecordingthesignalsemittedbythenavigationradarsinstalledonallships.Preparationsarenowunderwayforafollow-upprojectasabasisforconstructionofthesystem,whichistogointooperationin2014.Atthesametime,LuxSpacehasgainedfurthercus-tomersforitsshipmonitoringsystemusingthesatellite-basedAIS.AservicelevelagreementwasenteredintowiththeEuro-peanMarineSafetyAgency(EMSA),whichisbasedinLisbon.
SOFIA:NASABoeing747withanopenhatch,
behindwhichthetelescopeislocated.
OHBTechnologyAG|2010
28 Highlights2010
June2010
AtomicclocksinstalledbyKayser-ThredeattheGALILEO*controlcenter
Aspartoftheprecisetimingfacility(PTC)contract,Kayser-ThredefittedouttheGALILEO*controlcenterattheDLRsiteinOberpfaffenhofenwithfourcaesiumatomicclocksandtwohighlystableactivehydrogenmasersbetweenMarchandJune.TheseclockstogetherwithafurtherredundantPTFwillbegeneratingthetimesignalsrequiredtosynchronizetheentireGALILEO*system.Theprecisetimingfacility,inturn,generatestheGALILEO*systemtime(GST)anddistributesitwithinthesystem.Kayser-ThredewasinstructedbytheEuropeanSpaceAgencyESAtodesign,integrateandtesttheentirePTFsystemandisbeingsupportedbyaninternationalteamofacknowledgedtimeexperts.
June2010
Carlo Gavazzi Space: New Ariane telemetry productsunderdevelopment
CarloGavazziSpacesignedtwonewcontractswiththeFrenchspaceagencyCNESrelatedtotheprovisionofasystemtocapture,process,recordandretransmittheAriane5/ATVtelemetryaswelltheOCAMSoyuzvideostream(OnlineCAMeraSystem)toaremotecontrolcenter.TheOCAMsystemisanadditionaltelemetryacquisitionsystemfortheAriane5,Soyuz,Vegalauncher.Thissystemwasdeliveredattheendoftheyear.
LiftofffortheARIANE5launcher
*seeGlossary
OHBTechnologyAG|2010
June2010
ILA2010:OHBwiththelargestpresencetodate
OHBTechnologyAGhadthelargeststandinitshistoryatthe2010BerlinAirShow(ILA).TheOHBGroupanditssubsidiariesOHB-SystemAG,Bremen,Kayser-ThredeGmbH,Munich,MTAerospaceAG,Augsburg,CarloGavazziSpaceSpA,Milan,Italy,andLuxspaceSàrl,Betzdorf,Luxembourg,presentedthem-selvestothepubliconastandwithafloorareameasuringmorethan400squaremeters.
Top:TheOHBGroup’sstandatILA2010inBerlin|middle(fromleft):PeterHintze,parliamentarystatesecretaryintheGermanFederalMinistryofEconomicsandTechnologyandaviation/aerospacecoordinatoroftheGermanfederalgovernment;MarcoFuchs,OHB;
Prof.JohannDietrichWörner,CEOofDLR;HansSteininger,CEOofMTAerospace;ErwinHuber,CSU;LieutenantGeneralAarneKreuzingerJanik,ChiefofStaffGermanAirForce;Prof.ManfredFuchs,OHB|Below(fromleft):EvertDudok,
CEOofAstriumGmbH,JeanJaquesDordain,directorgeneralofESA,Prof.ManfredFuchs,OHB,Prof.VolkerLiebig,ESA
OHBTechnologyAG|2010
July2010
CelebrationonWendelsteinfortheKayser-Thredetelescope
Kayser-Thredeistheprimecontractorintheconstructionofthetechnicallysophisticated2-meterFraunhofertelescopeforthenewWendelsteinobservatoryoperatedbyLudwig-MaximilianUniversityinMunich.Acelebrationmarkingthehalf-waycom-pletionofthedomeandthebuildingwasheldatthesiteattheendofJuly2010.Kayser-Thredehascompletedthedevelop-mentanddesignworkforthetelescope,whichfeaturesawide-anglecameraandamulti-channelcamera.
OHBTechnologyAG|2010
31Highlights2010
July2010
OHB TechnologyacquiresThalesAleniaSpaceAntwerpN.V.andexten-dingitspresenceinEurope
OnJuly19,OHBTechnologyAGacquiredallofthecapitalofThalesAleniaSpaceAntwerpN.V.,Antwerp,Belgium,fromThalesAleniaSpaceFranceSAS.
Withitsheadcountofaround42employees,ThalesAleniaSpaceAntwerpN.V.generatedsalesofaroundEUR10millionin2009.Followingtheacquisition,ithasbeenrenamedAntwerpSpaceN.V.
AntwerpSpacespecializesindevelopingandproducingequip-mentforgroundstations,particularlyfortelecommunicationsandearthobservationapplicationsandisassemblingthenet-worklinkingthemissionandcontrolcentersofthefutureGali-leo*Europeansatellite-basednavigationsystem.TherangeofproductsacquiredthroughthistransactionwillreinforcetheOHBGroup’sgroundsegmentactivities.
Inthisway,OHBissystematicallycontinuingitsgrowthstrategyintheESAcountries.BelgiumisthefifthlargestfinancialcontributortoESAandthereforeakeycountryforfutureESAprograms.
July2010
MT Aerospacedevelopsnewcommonbulkheadtechnologyfortheupperstagetankofanext-generationlauncher
Theprogram’sobjectiveistodevelopanultralight-weightpro-pellanttankwithasandwichcommonbulkheadpatentedbyMTforanextgenerationlauncherDuringthe22-monthtechnologyprogramseveralmodelswillbemanufacturedandtested.ThecontractwithAstrium,Bremen,astheprimecontractorwassignedonJuly13.Thenewlargerupperstagetankwithtwointegratedchambersforliquidhydrogenandliquidoxygenwillhaveacapacityof29.3tons.Thiswillenableanewupperstagetotransportpayloadsofupto11.2tonsintogeostationarytransferorbitorvarioustargetorbits.ThedesignconceptproposedbyMTAerospaceshowinga40mmthinsandwichbulkheadbetweenthecoldliquidhydrogen(-253°C)andthecomparativelywarmliquidoxygen(-183°C)isabout40%lighterthanatwinbulkheadwithavacuumchamber;itsinsulationpropertiesaretentimesbetterincomparisontoanalternativeconceptwithawetinternalinsulation.
antwerpspace
*seeGlossary
Partitionsfortanksintheupperstageofnextgenerationlaunchers
OHBTechnologyAG|2010
32 Highlights2010
August2010
10 years of plasma crystal researchatKayser-Threde
DevelopedbyKayser-Threde,thePK-3PlusplasmacrystalunitwassuccessfullyputinoperationbycosmonautA.SkvortsovforaseriesofexperimentsonboardtheISS.This13thmissionconcentratedoncrystallization,melting,dischargeandagglomerationexperiments.
Likeitspredecessor,thePK-3Pluswasdevelopedandassem-bledbyKayser-Thredeinclosecollaborationwithinternation-allyrenownedscientists.UnderthetermsofacontractawardedbyDLR,Kayser-Thredeoversawallsystemaspectsoftheresearchunit.
ResearchhasbeenperformedonboardtheISSusingplasma-crystalequipmentprovidedbyKayser-Thredesincethebegin-ningof2001andtodateallexperimentshavebeencompletedsuccessfully.
September2010
Kayser-Threde: TET-1 satellitegivenflightreadinessstatusfollowingqualificationtesting
InAugust,Kayser-ThredewasadmittedtoqualificationtestinginitscapacityasprimecontractorofthenationalTET-1satel-litemission(technologymule).TET-1underwentsimulated24-hourmissionoperationsinwhichalongsidethestandardexperimentprogram15orbitswithfivedirectdatatransmis-sionsweresimulatedatKayser-Threde’sintegrationroom.InSeptember,TET-1wasexaminedintensivelyforviabilityattheIABGspacetestingcenter.Thequalificationprogramcom-prisedvibration,acousticandshocktesting,electromagneticcompatibility(EMC)testing,thermalvacuumtestsandteststodeterminethesatellite’smassproperties.Afterthesuccessfulcompletionofthetestingprogram,TET-1receivedflight-readi-nessstatus.
CosmonautSkvortsovduringtheexperimentswithPK3onboardtheISS
Top:EnvironmentaltestingoftheTET1satelliteatIABGinOttobrunnRight:IntegrationofTET1atKayserThredeinMunich
OHBTechnologyAG|2010
OHBTechnologyAG|2010
September2010
Expansion in OHB-System’sinterna-tionalpartnershipfortheCarbonSatconstellation
OHB-SystemAGwillbeworkingwiththeChineseInstituteofRemoteSensingApplications(IRSA),Peking,inthefutureunderthetermsofamemorandumofunderstandingwhichwassignedbybothpartiesinPekinginSeptember.Theaimistodevelopaglobalsatellitesystemformeasuringthegreenhousegaseswhichareattherootofglobalwarming.Thepartnershipwasinitiatedasaresultofaproposalforasatellite-basedglobalmeasuringandmonitoringsystemforthegreenhousegasesCO2andmethaneknownasthe“CarbonSat”constella-tion.ThisideaisbasedonthepreviousresearchworkwiththeESAsatelliteENVISAT,theScanningImagingAbsorption
AnimationoftheCarbonsatconstellation
SpectrometerforAtmosphericChartography”(SCIAMACHY)andrelatedChineseresearch.
OHB-SystemandtheInstituteofEnvironmentalPhysics(IUP)attheUniversityofBremenworkingwiththesupportoftheGermanAerospaceCenter(DLR)andeconomicdevelopmentagencyWirschaftsförderungBremenhavedevisedanewmea-suringsystembasedonasatelliteconstellationwithenhancedsensors.Theconceptsandtechnologiesdevelopedareworldleaders.Consequently,itwillnowbepossibleforthefirsttimetocollectdailymeasurementsinhighlocalresolutiontocreateareliablebaseofdataformoreaccurateforecastsofclimaticchangeasafoundationforpoliticalandeconomicdecisions.
OHBTechnologyAG|2010
35Highlights2010
September2010
Successful further developmentoffriction-stir-weldedandspin-moldedaluminum-lithiumtankdomesforcarrierapplicationsatMTAerospace
WorkingincollaborationwithLockheedMartinSpaceSystemsandNASA,MTAerospacehassuccessfullycompletedapro-gramforfabricatinginexpensiveandhighlyefficienttankdomesforfuturelaunchsystems.
Underthisdevelopmentprogram,tankdomeswereproducedusinghighlyrigidaluminum-lithiumalloyforthefirsttime.Comparedwithconventionalmaterialsusedinspacetechnol-ogy,thisalloyexhibitsgreaterrigiditycombinedwithreduceddensityandpermitsweightsavingsofupto25%.
Todate,domeswithadiameterofupto5.4metershavebeenproducedtosuccessfullydemonstratetheviabilityofthenewmaterial.Lookingforward,theentireprocess(FSW,spin-molding)istobeindustrializedandadditionallyusedforlarger-diametertanksfittedtofutureheavy-liftlaunchers.
October2010
NewappointmenttotheManagementBoardatMT Aerospace
Dr.WolfgangKonradjoinedMTAerospace’sManagementBoardonOctober1,2010,assumingthepositionofchiefoperatingofficer.AftergraduatingwithadegreeinmechanicalengineeringfromtheDarmstadtTechnicalUniversity,hewentontocompletehisdoctorateatPrincetonUniversityintheUnitedStates.Hecommencedhiscareerin1993atBMWRolls-RoyceAeroEnginesinMunichandBerlin,beforemovingtoBMWAGinMunichin1998,whereheheldvariousmanagementpositionsin
development,productionandqualityassurance.Atthebeginningof2007,hejoinedMTUAeroEnginesandwasappointedmanag-ingdirectorofMTUMaintenanceBerlin-BrandenburgGmbH,Ludwigsfelde.
Dr.WolfgangKonrad
FrictionstirweldingofatankdomeatMTAerospaceinAugsburg
OHBTechnologyAG|2010
36 Highlights2010
October2010
OHB-System:CelebrationstomarktheofficialcommencementoftheEuropeanizedSAR-Lupe system
The“Europeanizationofsat-ellite-basedreconnaissance”project(E-SGA)officiallywentintooperationonOctober20attheGermanfederalarmedforces’strategicreconnais-sancecommandinGelsdorf.HeldinthepresenceoftheViceChiefofStaffoftheBundeswehrandChiefofStaffoftheStreitkräftebasis,ViceAdmiralWolfgangKühn,thevice-presidentoftheGermanFederalOfficeof
DefenseTechnologyandProcurement(BWB)aswellasnumer-ousrepresentativesoftheGermanfederalarmedforces,theFrencharmy,industryandscience,thisceremonymarkedthecompletionofeffortstoestablishwhatwillinitiallybeabilat-eralcooperationprogram.
OHB-SystemAGwasselectedbytheGermanFederalMinistryofDefense,BWBandtheFrenchmilitaryprocurementauthor-ityDGAastheprimecontractorfortheimplementationofE-SGA.WorkentailedmodifyingtheGermanSAR-Lupegroundsegmentsothatitisabletofunctionasamultinationalgroundsegmentwhichcanbeaddressedbypartnernationsrequestingorprovidingimagedata.Inaddition,OHBdevelopedandsup-pliedapartnergroundsegmentforFranceknownastheFrenchSAR-LupeGroundSegment(FSLGS),allowingittoissueinstructionstotheSAR-Lupesystem.Inthisconnection,OHBwasalsoawardedthecontracttooperatethegroundsegment.
AfurtheraspectofthecontractwastoconnecttheGermanHELIOSIIgroundsegmentCentréPrimeeHeliosDeutschland(CPHD)tothemultinationalSAR-LupegroundsegmentsothattheFrenchsystemcanbeaddressedinGermany.Thedevelop-mentcontractwascompletedontimeandinbudget.Duringacceptancetesting,thecustomerdeterminedthatthedefinedrequirementshadbeensatisfiedinfull.
November2010
MT Aerospace workswithBavarianresearchcentersonnewlaunchertechnologies
OnNovember11,theBavarianMinisterofEconomicAffairs,MartinZeil,kickedofftwoBavarianresearchprojectsaimedatmakingfuturelauncherslighter,moreefficientandlessexpensive.
MTAerospaceAGCEO,HansSteininger,acceptedfromtheministergovernmentgrantsunderthe“BayernFIT–Forschung,Innovation,Technologie”innovationprogram.MTAerospaceAGisthelargestGermanpartnerintheEuropeanArianeprogram.Withintheseprojects,thecompanywillbeworkingwiththeAugsburgtechnologyclustercomprisingvariousresearchinstitutesandtheUniversityofAugsburgaswellastheBavarianstategovernment.
Theambitiousgoalistoachieveaweightreductionofupto30%infuturelaunchersaswellasconsiderablecutsinproductioncosts.Overthenextthreeyears,theBavarianstategovernmentandMTAerospaceAGwillbeinvestingajointsumofaroundEUR7million.
Bavarianministerofeconomics,MartinZeil(middle)handingHansSteiniger,theCEOofMTAerospace(left),
theinvestmentgrantdocuments
OHBTechnologyAG|2010
37Highlights2010
Top:animationofthetwosatellitetypesintheMTGprogramBottom:Weatherforecastsderivedfrom
satellitebasedearthobservation
November2010
PreliminaryMTGcontractssignedbyThales Alenia Space, OHB-System and Kayser-Threde
ThalesAleniaSpace,theprimecontractor,anditspartnerOHB-System,announcedattheendofNovemberthesignatureofan“authorizationtoproceed”(ATP)withtheEuropeanSpaceAgency(ESA)fortheMeteosatThirdGeneration(MTG)system.Co-financedbytheEuropeanSpaceAgencyandthemeteoro-logicalorganizationEumetsat,thisprogramwillguaranteeEuropeanaccesstospace-acquiredmeteorologicaldatauntil2037.Afterahotlycontestedbiddingprocess,thissigningmarkedthecompletionoftheESA/Eumetsatselectionphase.
MTGisasix-satellitesystemoffourimagingsatellitescarryingimagingandlightning-detectionfacilitiesaswellastwosound-erssatellitesprovidinginfraredandultravioletcapabilitiesforbothclimateandmeteorologicalapplications.ThelaunchofthefirstMTGimagingsatelliteisplannedfor2017,markingthebeginningofthein-orbitlifetimeoftheimagermission,fol-lowedbythelaunchofthefirstMTGsoundingsatellitein2019.TheMTGmissionwillresultinsubstantialimprovementsinthecapabilitiesofEuropeanmeteorologicalservices.
Thesoundersatelliteswilldeliverunprecedentedinformationonwatervaporandtemperatureprofiles.Theultraviolet,visibleandnear-infraredSentinel-4instrumentwillalsobeused.ItwillbescanningEuropeandprovidinginformationonatmosphericchemistryandairquality,thuscontributingtotheGMES(GlobalMonitoringforEnvironmentandSecurity)initiative.Inadditiontoitsprimecontractingrole,ThalesAleniaSpaceisinchargeoftheimagingmissionandwillbesupplyingthefourimagingsatellitesandtheirmaininstrument.
OHB-Systemisinchargeofthesoundermissionandwillbeprovidingthetwosounderssatellites.ItsaffiliateKayser-Thredewillbedeliveringthesounderinstrumentstobeusedforresearchingtheearth’satmosphere.Aswellasthis,OHB-Systemwillbedevelopingandbuildingthe3-axesstabilizedcommonplatformforthesatellites.
OHBTechnologyAG|2010
38 Highlights2010
November2010
megatel: Modernizationofthecoldrollline2L2forNovolipetskSteel(NLMK)inLipetsk,Russia
ConverteamGmbHinBerlinwasawardedthecontracttomodernizethesingle-standcoldrollline2foroneofthelead-ingRussiansteelproducers,NLMKNovolipetskSteelinLipetsk(Russia).Initscapacityassub-contractor,OHBsubsidiarymegatelisresponsibleforthevisualizationoftheLevel2dia-logsintheprocessmanagementsystem.Thisentailsdevelopingdialogsfortheentryareaandthemastercontrolsystem.Thesedialogsareusedtomanageandedittheinputandoutputsequencesaswellasthemillingdata.ThesystemwentintooperationonsiteinRussiabetweenNovember2010andJanuary2011underthesupervisionofmegatelstaff,amongothers.
ColdrolllineatNLMKinLipetsk,Russia
OHBTechnologyAG|2010
39Highlights2010
December2010
Arianespace:Sixth successful Ariane 5 launchin2010
WiththesixthsuccessfulAriane5missiononDecember29,Arianespacecompleteditsveryambitiouslaunchschedulefor2010.
Thisdaymarkedtheendtoasuccessfulyearaswellasthe41stconsecutivesuccessfullaunchofanAriane5.Thistime,thelaunchercarriedtwotelecommunicationssatellites–theHispasat1EandKoreasat6–intospace,releasingthemwithgreatprecisionintotheirplannedorbitsjust34minutesafterlift-off.Arianespacehasalsogottenofftoadynamicstartin2011,withthefirstAriane5flight,whichtransportedthesecondAutomatedTransferVehicle(ATV)totheInternationalSpaceStation,liftingoffonFebruary15,2011.AtotalofsixAriane-5launchesareplannedfor2011.
Arianespace’scapitalwasincreasedinDecember2010,withMT-Aerospacewideningitsshareinthecompanyto8.3%.
40
OHB TecHnOlOgy STOck
OHB stock buoyed at the end of 2010 by sharp rise in order receipts
Jan. Feb. Mar. April May June July Aug. Sep. Oct. Nov. Dec. Jan. Feb.
OHB Technology AG
TecDAX
DAX
40 OHBTechnologystock
OHB Technology stock
160
150
140
130
120
110
100
90
80
41
OHBTechnologyAG|2010
OHB Technology stock
Financial market caught between the effects of the economic crisis and the recoveryIn2010,stockmarketscontinuedontheupwardtrajectorywhichhademergedattheendof2009.Afterhittingalowfortheyearof5,434pointsonFebruary5,2010,theDAXstagedasharprecovery,hittingahighfortheyearof7077.99onDecem-ber21,2010.ItwasparticularlydrivenbystronggrowthinChinaandtheemergingmarkets.TheUSFederalReserveBankalsoprovidedadditionalstimuluswithitspolicyofcheapmoneyandafurtherprogramtobuypublic-sectordebtinstruments.
Finally,theDAXclosedtheyearat6914.19points.Withagainof16%,itwasthebestperformingEuropeanindex.Bycomparison,theDowJonesadvancedby11%overtheyearasawhole.Midandsmallcapsalsomadeconsiderableheadway,withtheMDAXrisingby35%andtheSDAXbyasmuchas46%.TecDAXedgedupby4%overtheyear,closingat850.67points.
OHB stock bucking trends in the broad marketContrarytothemarketasawhole,OHBstockperformedexcel-lentlyinJanuaryinparticular.ThiswasinresponsetonewsthatOHBhadbeenselectedtobuildandtest14satellitesfortheEU-fundedGalileo*EuropeannavigationsystemonJanuary7,2010.Theannouncementgeneratedheightenedinterestinthestock,somethingwhichwasreflectedinasharpriseindemand.FollowingtheannouncementthatOHB-Systemhadbeenselected,morethan1millionOHBsharesweretradedforthefirsttimeonasingledayonJanuary8,2010.Atthesametime,thestockreachedanall-timehighandalsoahighfortheyearofEUR18.34onthatday.Thereafter,itexperiencedrela-tivelyheavyvolatility.OHBstockclosed2010atEUR16.60,up48%fortheyear,thusoutperformingallmainindices.
AveragedailytradingvolumesofOHBstockremainedwelluponthepreviousyear.In2010,anaverageofaround48,000sharesadayweretradedviaXetraandonthestock-marketfloor,comparedwithjustunder15,000inthesameperiodofthepreviousyear,translatingintoamorethanthree-foldincreaseoverthepreviousyear.
Investor relations activities Lastyear,OHBpresenteditselftovariousinvestorsandanalystsatseveralcapitalmarketconferencesincludinginFrankfurtamMainandBaden-BadenaswellasatDeutschesEigenkapital-forum.Inaddition,itorganizedroadshowsinLondonandtheMiddleEast.
Thepublicationofthequarterlyinterimreportswasaccom-paniedbyregulartelephoneconferencesheldbytheManage-mentBoardandtheinvestorrelationsteamwithanalystsandinvestors.Throughouttheyear,theinvestorrelationsdepartmentdealtwithnumerousinquiriesreceivedfromprivateinvestorsandfinancialjournalists.
HeldonFebruary10,2011inBremen,the“CapitalMarketDay”onceagainmarkedthefirstmajorinvestorrelationsactiv-ityinthenewyear.Roughly40analysts,bankers,investorsandjournalistsacceptedtheinvitationissuedbytheManagementBoard.Thepresentationsheldparticularlyfocusedonthecur-rentGalileoandMeteosatprojectsaswellastheperformanceoftheGroup’sEuropeansubsidiaries.
Dividend of EUR 0.25 per share approved at the annual general meetingAttheannualgeneralmeetingheldonMay19,2010,theshare-holderspassedaresolutionapprovingthedistributionofadivi-dendofEUR0.25for2009.Asaresult,theCompanyhascontin-uedtopursueitsconsistentdividendpolicy.Inaddition,itwasauthorizedtobuyandutilizeitsownsharesinaccordancewithItem6oftheAgenda.Item7oftheAgendawasalsoapproved,allowingthecreationofcontingentcapitalforfutureequityissues.Afurtherresolutionwaspassedpermittinganamend-menttotheCompany’sbylawsinlinewiththeActtoImplementtheShareholderRightsDirective,whichtookeffectin2009.
OHB stock data
ISIN DE0005936124
Ticker OHB
Tradingsegment PrimeStandard
Primesector Technology
IndustryGroup CommunicationsTechnology
Indices PrimeAllShare,TecAllShare,CDAX,GEX
Designatedsponsor DZBANKAG,HSBCTrinkaus&BurkhardtKGaA
Issuedcapital EUR17,468,096
Sharetype No-par-valueordinarybearershares
*seeGlossary
42
OHBTechnologyAG|2010
OHB Technology stock
Treasury stockThecurrentstockbuybackprogramcommencedonNovember1,2007.Notreasurystockwasacquiredin2010.Atthisyear’sannualgeneralmeeting,theshareholderspassedaresolutionpermittingtheCompanytobuybackitsownsharesonorbeforeMay18,2015.AsofDecember31,2010,OHBTechnologyAG’streasurystockcomprisedatotalof66,954shares,equivalentto0.38%ofitsissuedcapital,i.e.unchangedinnumbersinceDecember31,2009.
Analyst ratings
Target price Date Bank in EUR Rating
March2011 VISCARDI 22.00 Buy
February2011 Commerzbank 20.00 Buy
February2011 WestLB 18.50 Buy
February2011 DZBANK 16.50 Buy
November2010 HSBCTrinkaus &Burkhardt 16.50 Overweight
The 7th Capital Market Day was held in Bremen this time
43
OHBTechnologyAG|2010
OHB Technology stock
OHB stock parameters in EUR (Xetra)
2009 2008 2007
End-of-yearprice 11.20 8.00 13.59
Highfortheyear 11.35 13.92 15.45
Lowfortheyear 5.85 4.82 9.65
Marketcapitalization(endofyear) 196million 119million 203million
Averagedailytradingvolumes(Xetra+floor) 15,220shares 8,868shares 16,984shares
Price/earningsratio(P/E)(finaltradingdayoftheyear) 11.66 13.1 16.2
Earningspershare(EPS) 0.96 0.61 0.84
Dividendpershare 0.25 0.25 0.25
Dividendyield(endofyear) 2.23% 3.13% 1.84%
* Subject to approval by the shareholders
Free float (5,222,422shares)
Treasury stock(66,954shares)
Issued capital: 17,468,096 shares
Fuchs pool (12,178,720shares)
OHB Technology AG shareholder structure on December 31, 2010
29.90 %
0.38 %
69.72 %
2010
16.60
18.34
11.50
290million
47,546shares
30.18
0.55
0.30*
1.81%
44 Group management report
gROUP MAnAgeMenT RePORT
Management report for the year from January 1, 2010 until December 31, 2010
45 Businessperformanceandunderlyingconditions45 Highlightsin201045 Underlyingeconomicconditions46 OrganizationalandlegalstructureoftheGroup47 Businessperformancein201051 Salesandorders53 Resultsofoperations53 Assetsandfinancialcondition54 Employees54 Researchanddevelopment55 Quality,environmentmanagementanddataprotection
57 Significanteventsoccurringaftertheendoftheperiodunderreview
57 Outlook58 Internalcontrolandriskmanagementsystem59 Opportunityandriskreport60 Compensationreport60 Relatedpartiesreport60 DisclosuresinaccordancewithSection315(4)
oftheGermanCommercialCode61 Corporategovernancedeclaration
Consolidated total revenues over eight years in EUR millions
2008
223.3
2007
185.7
2006
117.1
2005
114.1
2004
105.8
2003 2010
321.8
453.3
2009
260.0
2005 2009 20102006 2007 20082003 2004
45
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1.00
0.90
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0
Earnings per share
Over eight years in EUR
*seeGlossary
BUSINESS PERFORMANCE AND UNDERLYING CONDITIONS
Highlights in 2010 41% increase in total revenues to EUR 453 millionTheOHBTechnologyGroup’stotalrevenuesrosebyEUR131milliontoEUR453millionintheyearunderreview.WithanincreaseofEUR90millionor133%intotalrevenuestoEUR210million,theSpaceSystems+Securitybusinessunitperformedparticularlywell.Moreover,thefull-yearinclusionofCarloGavazziSpaceS.p.A.,whichhadbeenconsolidatedforthefirsttimeonOctober1,2009,alsohadafavorableeffectintheyearunderreview.
Order backlog of EUR 1,160 million as of December 31, 2010 still at a very high level AtEUR1,160million(previousyearEUR834million),theorderbacklogremainedataveryhighlevelprimarilyduetothesuccessfulnewbusinessachievedin2010.Thisensuresaveryreliablebasisforfutureplanningandhighcapacityutilizationacrossallbusinessunits.
Record EBIT achievedEBITDArosetoatotalofEUR33.7million(previousyearEUR31.7million),withoperatingearnings(EBIT)alsoclimbingtoEUR22.7million(previousyearEUR20.8million).ConsolidatednetprofitfortheyearcametoEUR9.6million(previousyearEUR14.9million),whileearningspersharefortheyearunder
reviewequalEUR0.55(dilutedandbasic),downfromEUR0.96inthepreviousyear.
Successful new business efforts ImJanuary2010,OHB-SystemAGandtheEuropeanSpaceAgencyESAsignedacontractforthedevelopmentandcon-structionof14Galileo*satellites.Theprojecthasatotalvol-umeofaroundEUR566million.OHB-SystemAGhasassumedthefunctionofprimecontractorandisalsoresponsibleforthedevelopmentandassemblyofthesatellitebus.
OHB-SystemAGandtheprimecontractorforthethird-generationMeteosatsystemThalesAleniaSpacesignedapre-liminarypartcontract,knownasthe“authorizationtoproceed”(ATP)inNovember2010.Co-financedbytheEuropeanSpaceAgencyandthemeteorologicalorganizationEumetsat,thisprogramwillguaranteeEuropeanaccesstospace-acquiredmeteorologicaldatauntil2037.TheprojecthasavolumeofaroundEUR1.3billion,ofwhichasumofapproximatelyEUR750millionhasbeenallocatedtotheOHBTechnologyGroup.The“authorizationtoproceed”entailsdevelopmentworkofavolumeofaroundEUR21millionoverthenextsixmonths.
Underlying economic conditionsAftertheprevioussevereslump,grossdomesticproduct(GDP)inGermanyexpandedby3.6%inprice-adjustedtermsin2010,markingthestrongestrateofgrowthsinceGermanreunifica-tion.Foreigntradecontributedonethirdtothisfavorableperformance.Exports,whichhadtumbledby14%duringthe
0.42
0.61
0.96
0.55
0.72
0.81 0.84
0.31
46
OHBTechnologyAG|2010
Group management report
economiccrisis,werespurredbythesharpincreaseindemandintheemergingmarkets.However,domesticdemandalsomadeacrucialcontributiontogrowth,withconsumerspendingaswellascapitalgoodsandconstructionspendingallrisingsubstantially.At40.5million,employmentnumbersreachedanewhigh,whilethenumberofunemployeddroppedaccordingly.Germanyclosed2010asoneoftheworld’sbesteconomicper-formerswithGDPexpansionthreetimestheaveragerecordedfortheEuropeanMonetaryUnionasawhole.
Underlying conditions in the sectorSpace technologyConditionsinthenationalandinternationalspacetechnologysectorhaveremainedupbeat.InGermany,thenationalspacetechnologybudgetandtheGermancontributionstotheESAprogramscontinuedtorisesteadilyasplanned.InDecember2010,theGermanfederalgovernment,representedbytheGermanFederalMinistryofEconomics,publishedthemainele-mentsofthenationalspacestrategy.TheGermanAerospaceCenter(DLR)willbeimplementingthisstrategyasanationalspaceprogramthisyear.
TheTreatyofLisbongivestheEuropeanUnionandalsotheEuropeanCommissionkeyinfluenceoverEuropeanspacetech-nologyinthefuture.Althoughthefinalstructuresarestilltobecreated,itisalreadyclearthatcrucialimportancewillbeattachedtocivilsecurityalongsidenavigation(Galileo*)andtheenvironment(GMES–GlobalMonitoringforEnvironmentandSecurity).
In2010,theGermanFederalMinistryofDefenseoutlinedthepossiblespecificationsforafollow-upsystemtoSAR-Lupe,withproposalsforthedevelopmentofsuchasystemexpectedtoberequestedin2012followedbytheawardofthecontractin2013.Europeancooperationintheareaofsatellite-basedreconnaissanceiscurrentlybeingrestructuredandrealignedonthebasisofstudiestowhichOHB-Systemhasalsomadeintensivecontributions.
Themarketforcommercialcommunicationssatellitesandearthobservationremainsstable.
Demandforlaunchservicesisstillsteady.TheenduringtechnicalsuccessoftheAriane5programshouldresultinareliablelaunchcadenceatArianespaceagainin2011.
Spaceactivities,particularlythoseassociatedwiththeestablishmentoftelecomandearthobservationinfrastruc-tures,enjoyhighpriorityinItaly.In2010,theItalianSpaceAgency(ASI)draftedalong-termplanmappingoutopportuni-tiesforfunding‘flagship’nationalprogramsintheapplicationdomainaswellasresearchonscientificpayloadstechnology.
Telematics + Satellite OperationsThefavorableunderlyingeconomicconditionswerealsoreflectedinthecommercialvehiclemarketin2010,withthesectorregisteringasubstantialincreaseinnewregistrationsoverthepreviousyear.Evenso,theywerestilldownonthelong-termaverage.
Asaresult,norecoveryemergedinsalesoffactory-fittedtelematicssystemsforcommercialvehicles.Inthewakeoftheeconomicdownswingin2009,manycustomershadpostponedplannedproductlaunchesfor2008/2009untilfurthernotice.
Organizational and legal structure of the GroupAsanaerospaceandtechnologygroup,OHBTechnologyAGcombinesmanyactivitiesfromdifferentareasofhightechnol-ogy.Inadditiontospaceflightactivities,aircraftcomponentsbusinessformsakeyelementofitsactivities.
OHBTechnologyisajointstockcompanyincorporatedinaccordancewithGermanlawwithregisteredofficesinBremen.ThesubsidiariesandassociatesofOHBTechnologyAGareoverseenlocallybytheirrespectivemanagements,whoareabletodirectlycontributetheirexperienceandskillsandbene-fitfrommarketproximity.Thisdecentralizedstructureoffersdecisiveadvantages:Directcommunicationsbetweensuppliers,customersorotherstakeholdersandtheresponsiblecontactswithintheindividualcompaniesreducethelossofinformationandtime.Inaddition,theindividualcompaniesareabletoretaintheirindividualityandcorporateculturewithintheGroup,whilestillbeingboundbythedecisionsmadebytheparentcompany.OHBTechnologyAGitselfdoesnotengageinanyoperatingbusinessbutsupportsthesubsidiariesintheirsalesandmar-ketingactivitiesandthusassumestheroleofanactiveholdingcompany.
OHBTechnologyAGcomprisesthefollowingbusinessunits:• DerSpace Systems + Securitybusinessunit,whichspecial-
izesinsatellitedevelopment,humanspaceflight,explorationaswellassecurityandreconnaissancetechnology.
• The Payloads + Science businessunit,whichconcentratesondevelopingandimplementingpayloads,scientificequipmentanddevicesforaeronautics/aerospace,researchinstitutesandindustry.
• The Space Internationalbusinessunit,whichcoversallspaceactivitiesoutsideGermany.
• TheSpace Transportation + Aerospace Structuresbusinessunit,whichisprimarilyasupplierofkeycomponentsforaerospaceandaviationproductsandpossessessystemskillsintheantennaandmechatronicssegment.
• TheTelematics + Satellite Operationsbusinessunit,whosemainfocusisonOEMsolutionsforcommercialvehicleproducersaswellasgeographicalinformationsystemsandweb-baseddatabasesolutions.
*seeGlossary
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BUSINESS PERFORMANCE IN 2010
TheOHBGroup’sveryfavorableperformanceintermsofsales,totalrevenues,EBITDAandEBITcontinuedin2010.Inparticular,totalrevenuesroseby41%overthepreviousyearfromaroundEUR322milliontoaroundEUR453millionintheyearunderreview.Thiswasaccompaniedbya48%increaseinsalestoaroundEUR425million,upfromEUR287millionthepreviousyear.Inthisconnection,itshouldbenotedthatCarloGavazziSpaceS.p.A.,whichhadbeenacquiredonOctober1,2009,wasconsolidatedforthefirstfullyear.
Space Systems + Security business unit IntheSpaceSystems+Securitybusinessunit,OHB-SystemAGworksonlong-termprojectswhicharegenerallyawardedbypublic-sectorcustomers.TheveryhighorderbacklogofcurrentlymorethanEUR600millionensureshighforwardplanningvisibilityoverprotractedperiodsoftimeandsustainedgrowth.
Earth observation and reconnaissanceTheOHB-System-developedSAR-LupesatellitesandtherelatedgroundsystemsprovidetheGermanfederalarmedforceswithahighlymodernandcapableradarsatelliterecon-naissancesystem.Thesystemisoperatingstablyandtothefullsatisfactionofthecustomer(GermanFederalOfficeofDefenseTechnologyandProcurement)andtheGermanarmedforces.ThecontractfortheestablishmentofthejointGerman/FrenchreconnaissancesystemcomprisingtheSAR-Lupesatellitesys-tem(radarimages)andtheFrenchHeliosIIprogram(opticalimages)hasnowlargelybeencompleted.KnownasE-SGA/FSLGS,thesystemwashandedovertothecustomerinOctober2010.OHBiscurrentlyconductingpreparatorystudiesforafollow-upSAR-Lupesystemsothatitisreadyfortheexpectedrequestforproposalsin2012.
ProgressonthenationalopticalearthobservationprogramEnMAP(EnvironmentalMappingandAnalysisProgram)hasbeendelayed.Equippedwithseveralhyperspectralsensors,itwillbeprimarilyusedtomapthestateoftheplanetandtocon-tinuemonitoringitscondition.Itisaninnovativesystemwhichcanbeusedformanynewareasofapplication.
UsingasabasistheSGEOcommunicationssatelliteplat-form,OHB-Systemsubmittedatenderforthedevelopmentandconstructionofthethird-generationEuropeanweathersatellitesMTG(MeteosatThirdGeneration)asaco-primeinconjunctionwithThalesAleniaSpace.WorthatotalofaroundEUR1.25billionincludingasharefortheOHBGroupofsomeEUR750million,thisbidwasselectedbyESAandEUMETSATinNovem-ber2010.Thiswasfollowedbythegrantofauthorizationtoproceedonthefirstphaseofthedevelopmentprogram.
Thecontractprovidesforthedeliveryofsixsatelliteplat-forms,twopayloadstobesuppliedbyKayser-Thredewith
infraredsoundersandtheintegrationofthesepayloadswithtwooftheplatformstofabricatefullyenclosedsatellitesystems.ThefourotherplatformswillbedeliveredtoThalesAleniaSpaceinFrance,wheretheywillformthebasisfortheimagersatellites.
FollowingcontributionsmadebyOHB-SystemandKayser-Threde,thescientificproposalforagreenhousegasmonitoringmission(CarbonSat)undertheleadmanagementoftheUniver-sityofBremenwasselectedbyESAoutoftwocandidatesforthenextEarthExplorerMission.
Inthisway,OHB-Systemhasvariousearthobservationproductsrangingfromradarsatellitestoopticalobservationsystems.
InJuly2010,OHBwasawardedacontractbyESAtoconducttheGMESSecuritystudy.ThisextensivestudywillbeidentifyingrequirementswithrespecttoafutureEuropeanspaceinfra-structuretoprotectcivilsecurityinEurope.GMESSecurityisapossiblecandidateforinclusioninthenextmajorEUinfra-structureproject.
CommunicationsTheawardbycommercialSpanishsatelliteservicesproviderHISPASATofacontractforthedeliveryoftheAG1satellitein2009markedanimportantmilestoneintheongoingcommer-cialexploitationoftheSGEOplatform.Forthispurpose,OHB’snewSGEOsatelliteplatformisbeingdeployeddirectlyinasat-elliteoperator’scommercialsystem.Thesatelliteisscheduledforlaunchinearly2013.
ESAisalsoplanningtousetheSGEOplatformasabasisfortheEuropeanDataRelaySatellite(EDRS)withintheARTES-7program.FollowinganinvitationforproposalsfortheEDRSprogram,ESAawardedthecontracttosatelliteoperatorAstriumSatelliteServicesinthethirdquarterof2010.OHB-Systemhasbeenselectedasthesupplierofthesatellite.AfinaldecisionontheimplementationoftheprojectwasmadeinFeb-ruary2011,withthefirstpart-contractexpectedtobesignedinMarch2011.
TheenhancementstotheSGEOmodelforuseasaspecial-izeddatarelaysatelliteinultra-high-speedsatellite-to-satel-litecommunicationsarecreatinganimportantnewstrategicsegmentinboththecivilianandmilitarymarket.
ThisOHB-developedplatformwasalsodefinedbyDLRasthebasisforanationaltelecommunicationsmission(“HeinrichHertzSatellite”).OHB-SystemhascompletedtherelevantPhaseAstudy,withadecisionontheimplementationoftheHeinrichHertzmissionexpectedin2011.
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NavigationTheEUandESAinvitedproposalsfortheoperationalsatellitesoftheGalileo*spacesegment.OnJanuary7,2010,OHBwasawardedthecontractworthEUR566millionfortheconstruc-tionandtestingof14satellites.
Inviewofthetightdeadline,allnecessaryinfrastructuremeasureswereimplementedandtheprojectteamassembledin2010.Allmainsubcontractorsandsupplierswereselectedin2010andmostofthecorrespondingcontractsawarded.
Space explorationOHB-Systemhassubmittedabidforthecarrier/orbiterelementofESA’sExoMarsprogram.TheCompanyisamemberoftheThalesAleniaSpaceteamonthisEuropeanmissiontoMars.FollowingtheestablishmentofapartnershipbetweenESAandNASA,OHB-Systemwasinstructedtocommenceworkin2010.
Space research and robotics OHB-SystemisparticipatinginESA’snextEuropeanscientificresearchmissionasaprimecontractorandwillbepreparingstudiesfortheMarcoPoloandLaplacemissions.Inthisway,itiscontinuingtoestablishapositionforitselfinthisclassicsegmentofspacetechnology.TheCompanywillbespecificallyfocusingonthemajorJupiter-Ganymede/LaplacemissionasthisiswhereitsSGEOexperiencewillbeabletomakeapartic-ularcontribution.SelectionbyESAandfurtherstudiesarescheduledfor2011.
Thus,OHB-Systemhasbeenassignedsystemmanagersta-tusforPhaseBoftheplannedGerman“DEOS”roboticmissioninthenationalprogram.Thissystemmanagerstatusforahighlycomplexsatellitesystemfortheverificationofde-orbit-ingandin-orbitservicingofLEOsatellitesmarksacrucial
milestoneineffortstogrowsystemcapabilitiesinallmarketsegmentsandalsoformsanimportantelementofthenationalspacestrategy.
Human spaceflightAseriesofexperimentsoverseenbyOHB-Systemwascon-ductedontheinternationalspacestationISS.TheyincludedWAICO2,whichexaminedplantgrowthingravity-freecondi-tions.
In2010,variousexperimentsweresuccessfullycompletedintheEPMspacelaboratory,whichhadbeendevelopedandbuiltbyOHB-Systemin2008andtransportedtotheISStogetherwiththeEuropeanColumbusmodule.OneoftheseexperimentswasNeurospatforinvestigatingastronauts’spatialorientationingravity-freeconditionstogetherwithadeviceformeasuringlong-termcosmicradiationexposureintheColumbusmodule.
Payloads + Science business unitSpace technologyTheoutstandingeventoftheyearinthespacetechnologysegmentwastheawardoftwomajorcontractsundertheMTGprogram.Kayser-ThredeisasubcontractorforbothThalesAleniaSpaceandOHB-System.Thecontractentailsthedevel-opmentandconstructionofatotalofsixthird-generationEuro-peanweathersatellitesforESAandtheEuropeanweatherorganizationEUMETSAT.Kayser-Thredeistheprimecontractorforoneofthetwomaininstrumentswhichwillbedeployedontwosatellites.Atthesametime,itwillberesponsibleformajorsubsystemsofafurtherkeyinstrumentwhichwillbefittedtotheotherfoursatellites.Thiswasfollowedintheautumnbythe
Order backlog by business unit
Total order backlog 1,160.512/31/2010 in EUR millions
*seeGlossary
Telematics + Satellite Operations
Space Transportation + Aerospace Structures
Space Systems + Security
Payloads + Science
Space International378.1
29.4
600.5
60.4
92.1
49
OHBTechnologyAG|2010
Group management report
issueofauthorizationtoproceedwiththefirstphaseofthedevelopmentprogram.
WorkwascommencedontheestablishmentofthePreciseTimingFacility(PTF)-agroundunitforsynchronizingtheon-boardclocksofallGalileo*satellites-atthecontrolcenterinOberpfaffenhofen.Inspring2010,afurthercampaignwasheldwiththelaunchofahigh-altitudeMAXUSresearchrocket,towhichKayser-Thredetelemetricsandrecoverysystemswerefitted.
TheairborneSOFIAtelescopewentintooperation,whilecosmonautsonboardthespacestationcompletedfurtherseriesofexperimentsinvolvingthePK-3Plusplasmacrystalsystem.Alltheseinstrumentscompletedtheirprogramsasplannedorarecontinuingtofunctioncorrectly.
InSeptember,Kayser-ThredehadTET-1testedintensivelyforviabilityattheIABGspacetestingcenterlocatednotfarawayinOttobrunn.FollowingthesuccessfulcompletionofthequalificationprogramatIABGinOberpfaffenhofen,furthertestingandtheflightacceptancereviewinNovember2010,DLRissuedauthorizationtoproceedwiththeflight,whichisscheduledforthefirsthalfof2011.
Process control technologyProcesscontroltechnologyactivitieshavebeenplayingaleadingroleininnovativesystemsfortheremotecontrolandautomationofGermanrailwaycompanyDB’sownsignalingtechnology(stationsignalingsystems)since1976.In2010,tennewconstructionandconversionprojectswerecompletedandnumerousexistingsignalingsystemsequippedwithnewfunctions.
Space International business unit InafurthersteptoimplementitsEuropeangrowthstrategy,OHBTechnologyAGacquiredallofthecapitalofThalesAleniaSpaceAntwerpN.V.,Antwerp,Belgium,onJuly19,2010.Con-solidatedinfullfromAugust1,2010,thecompanywasrenamedAntwerpSpaceN.V.inOctober2010andformspartoftheSpaceInternationalbusinessunit.
Theyearunderreviewwassignificantlyinfluencedbytheprogressmadeonprojectwork,particularlysatellites.Deserv-ingofspecialmentioninthisconnectionisthePRISMAsatelliteproject(customer:ItalianSpaceAgencyASI)withahyperspec-tralscientificpayloadinconnectionwithahigh-performanceplatform,whichsuccessfullypassedanimportantcontractualmilestone,thecriticaldesignreview(CDR).LARES,thefirstsatellitetobelaunchedbyVEGA,hasinitiatedtheflightreadi-nessreviewculminatinginalaunchinlate2011.
Intheareaofscientificpayloadsandlaboratories,CarloGavazziSpacedeliveredtoNASAthehardwarerequiredfortheAMSantimatterspectrometer,whichissettoflywiththelastShuttlemissionin2011,andmadefurtherprogressintheintegrationoftheflightmodeloftheLISAPathfinderInertialSensor.
IntegrationwithintheOHBGroupofAntwerpSpaceN.V.,whichspecializesindevelopingandproducingequipmentforgroundstationsparticularlyfortelecommunicationsandearthobservationapplications,wascompletedattheendoftheyear.ThemostimportantprojectcurrentlybeingpursuedbyAntwerpSpaceN.V.istheassemblyoftheoverarchingnetworklinkingthemissionandcontrolcentersofthefutureGalileo*European
Total revenues by business unit before consolidation and holding
in EUR millions
Telematics + Satellite Operations
Space Transportation + Aerospace Structures
Space Systems + Security
Payloads + Science
Space International
210.1
53.7
57.4
138.3
14.8
*seeGlossary
30
25
20
15
10
5
0
2003 2004 2007 2009 201020082005 2006
50
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Group management report
satellite-basednavigationsystem.Inaddition,thecompany’sfuturestrategywasjointlymappedoutbytheOHBGroupandtheBelgianspaceagency(BELSPO)andprovides,amongotherthings,fortheadditionofactivitiesrelatedtoin-orbithardwareforsatellites.
LUXSPACEcontinuedtobroadenitsAISdataserviceactivi-tiesin2010.Inadditiontogainingnewinstitutionalandcom-mercialcustomers,itwasawardedacontractbyUScompanyORBCOMMInc.fortheconstructionoftwoAISsatellites.Tobelaunchedin2011,thetwosatelliteswillsupplyAISdataofasub-stantiallyimprovedqualityforbothORBCOMMandLUXSPACE.Atthesametime,variousmilestoneswereachievedinconnec-tionwiththeSmallGEOproject,inwhichLUXSPACEisrespon-siblefortheTTRsystemandthesimulator.
Space Transportation + Aerospace Structures business unit In2010,atotalofsixAriane5launchesweresuccessfullyexecuted,allentailingtheenhanced-performanceECAversionwithapayloadofaround9tons.ProductionanddeliveryofAriane5componentsproceededaccordingtoschedule.
In2010,businessinaircraftproductsprimarilyentailedthedeliveryoffreshandwastewatertanksforAirbusaircraft.DevelopmentoftanksforthenewAirbusA350iscontinuinginbudgetandontime.Noseriessaleshavesofarbeengeneratedfrombusinessinlight-weightstructuresforthemilitarytrans-porterA400MwithAirbus.Moreover,Airbuscanceledthecon-tractforthedevelopmentanddeliveryoffloorbracketsforthelong-haulA380aircraftin2010.
HeavyassemblyworkontheSardinianradiotelescopewassuccessfullycompletedinDecember2010.ThishadbeenprecededinMay2010byaspectacularbigliftinwhichthesteel
reflectorwithadiameterof64metersandaweightof520tons,whichhadbeenpreassembledandweldedinfullontheground,wasliftedbyaspecialcraneandmountedontopofthe34meterhightower.
Attheendof2010,thecustomerwasfurnishedwithtwoantennasfortestingpurposesfortheALMAproject,whichiscurrentlybeingassembledintheAtacamaDesertinChileandcomprises25individualradiotelescopeswithamirrordiameterof12meters.ThecontractisbeingexecutedbyaEuropeanindustrialsyndicate,ofwhichMTMechatronicsisalsoamember.Inadditiontosupplyingthemechanicalelements,thecompanyisadditionallyresponsiblefortheassemblyandthestart-upofall25precisiontelescopesinChile.Theprojecthasfallenbehindscheduleduetodelaysinthedeliveriesofthenecessarycomponentsandtheneedforcomplexon-sitesystemadjust-ments.
Maysawthefirst-lightflightfortheSOFIAinfraredtele-scope,whichhadbeendevelopedandbuiltbyMTMechatronicsasleadmanagerforDLR.Forthefirsttime,thisuniqueairborneobservatoryobservedinfraredobjectsinflight.MTMechatronicscontinuestodeployitsownteamofexpertstooptimizetheover-allsystem.CurrentlystationedatNASAinDryden,California,theobservatoryisexpectedtoarriveinGermanyinthelatesummerof2011forthefirsttime,atwhichtimeitwillbemakingitspublicdebut.
In2010,MTMechatronicswasawardedacontractbytheSpanishministryofinfrastructuretodevelopthenext-genera-tiontelescopesforverylongbaselineinterferometryincludingturn-keyassemblyofatotalof3facilitiesnearMadrid,ontheCanaryIslandsandontheAzores.Thisdevelopmentwillresultinanewstandardfortheglobalmarket.
Over eight years in EUR millions
EBITDA
8.5
11.6
25.9
31.733.7
28.7
19.3
27.9
*seeGlossary
21
18
15
12
9
6
3
0
2003 2004 2007 2009 201020082005 2006
51
OHBTechnologyAG|2010
Group management report
Likewise,MTMechatronicsreceivedin2010acontractfromtheUnitedStatesprovidingforsystemdetailengineeringandthedeliveryofthehardwareandsoftwareforthecontrolsystemsfortheATSTAdvancedTechnologySolarTelescope.Tobeassembledatanaltitudeof3,000metersonMountHaleakalaonMaui,Hawaii,theATSTwillbeoneoftheworld’slargestandmostpowerfulsolartelescopes.MTMechatronicsisconfidentthatthispreliminaryUScontractwillprovideitwithimprovedaccesstotheUSmarketforfutureprojects.
Telematics + Satellite Operations business unitTalksarecurrentlybeingheldwithDAFonfuturejointprojectactivities.Onepossiblescenarioentailstherelaunchoftheexistingproductorthedevelopmentofaneworenhancedsystem.
ThenumberoftelematicssystemsshippedtoMANCom-mercialVehiclesroseagainsubstantiallytoaround5,200units.Thistrendshouldcontinuethisyearasafollow-upsystemisnotplanneduntilthebeginningof2013.
ThedevelopmentofanavigationsystemforaNorthernEuropeancommercialvehicleOEMpassedfurthermilestones.Asaresult,atestingphaseoveraperiodofseveralmonthsiscurrentlyongoing,withamarketlaunchscheduledforthisyear.
Inresponsetoflatnewbusinessintelematicsterminalsinthetrucksegment,OHBhasenteredthemarketforbatterymanagementsystems.Inthissegment,ithasalreadygener-atedbusinessinthemarinesectorandforautomotiveelectricdrivesinhybridvehicles.Bothprojectsareproceedingaccord-ingtoschedule;infact,theautomotiveprojecthascompletedextensivetesting.
Lastyear,OHBTeledataandmegatelsuccessfullycompletedtheintegrationofasoftwarepackageintheC4icommandandcontrolcenterinShuaiba,Kuwait.ThepurposeofC4iistoensurefullsurveillanceoftheportareafromthelandandsea-sidetoprotectinfrastructurefacilitiesandcargo.Thesuccess-fulexecutionofthisprojectmarkstheentryintoanewmarketsegment.FollowingthesuccessfulcompletionofthisproductinKuwait,OHBwillinafollow-upprojectbesupplyingcorecom-ponentsrequiredformonitoringafurthermajorinfrastructureproject.Lastyear,megatellaunchedaniPhoneapplicationknownasShareLocktopermitmobilerecordingofdatabyservicestaff.Inadditiontorecordingdata,theproducthelpsfieldemployeestoplantheirtoursandprovidesnavigationfortransportationonfootorcycleandbycar.
SALES AND ORDERS
TheOHBTechnologyGroup’stotalrevenuesrosebyEUR131milliontoEUR453millionin2010.WithanincreaseofEUR90millionor133%intotalrevenuestoEUR210million,theSpaceSystems+Securitybusinessunitperformedparticularlywell.Moreover,theinclusionofCarloGavazziSpaceS.p.A.,whichhadbeenconsolidatedforthefirsttimeonOctober1,2009,forthefirstfullyearalsohadafavorableeffectintheyearunderreview.ConsolidatedsalescametoEUR425.5million(previousyear:EUR287.2million).
OrdersandongoingbusinesswereverystrongintheSpace Systems + Securitybusinessunit.Thus,non-consolidatedtotalrevenuescametoEUR210.1millionin2010(previousyearEUR89.9million),whilenon-consolidatedsalesrosetoEUR206.8million(previousyearEUR88.7million).Thisveryencouraging
Over eight years in EUR millions
6.3
8.5
EBIT
17.5
20.822.7
18.7
14.1
20.4
0-1 1 2 3 4 5 6 7 8
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performanceisparticularlyduetotheprogressmadeontheGalileo*projectandthegratifyinggrowthinorderreceipts.TheheavyorderbacklogofoverEUR600millionasofDecember31,2010ensureshighforwardvisibilityoveraprotractedperiodoftimeaswellascontinuedgrowth.
ThePayloads + Sciencebusinessunitgeneratednon-con-solidatedtotalrevenuesofEUR53.7millionin2010(previousyearEUR64.3million),accompaniedbysalesofaroundEUR42.7million(previousyearEUR62.0million).Lookingforward,thisbusinessunitalongsidetheSpaceSystems+SecuritybusinessunitwillmateriallybenefitfromtheMeteosatThirdGenerationproject.TheplannedshareofthisprojectwillbewortharoundEUR322million.
OnOctober1,2009,theGroupwasextendedwiththeadditionofthenew
Space InternationalbusinessunitfollowingtheacquisitionofCarloGavazziSpace.ThisnewbusinessunitcomprisestheGroup’snon-Germanspacetechnologyactivitiesandisprimar-ilymadeupofCarloGavazziSpace(Milan)aswellastheinvest-mentsinLUXSPACESàrlandELTA,whichhadpreviouslybeenassignedtotheSpaceSystems+SecuritybusinessunitupuntilDecember31,2008.Inaddition,OHBTechnologyAGacquiredallofthecapitalofThalesAleniaSpaceAntwerpN.V.,Antwerp,Belgium,in2010.TheacquisitionwasexecutedonJuly19,2010andthecompanyconsolidatedinfullfromAugust1,2010.RenamedAntwerpSpaceNVonOctober28,2010,thiscompanyspecializesindevelopingandproducingequipmentforgroundstations,particularlyfortelecommunicationsandearthobser-vationapplications.Thebusinessunitgeneratednon-consoli-datedtotalrevenuesofEUR57.4millionin2010(previousyear
EUR19.9million),accompaniedbynon-consolidatedsalesofEUR53.2million(previousyearEUR17.7million).
TheincreaseintotalrevenuesandsaleswasparticularlydrivenbytheconsolidationofCarloGavazziSpaceforthefirstfullyear.
TheSpace Transportation + Aerospace Structuresbusi-nessunitrecordedtotalnon-consolidatedrevenuesofEUR138.3millionin2010(previousyearEUR151.0million)andnon-consolidatedsalesofEUR133.2million(previousyearEUR123.2million).AsofJanuary1,2010,MTAerospaceGuyaneS.A.S.,Kourou(FrenchGuiana),andMTAerospaceSatelliteProductsLtd.,Wolverhampton(UnitedKingdom)wereconsoli-datedforthefirsttimeduetoarevisedassessmentoftheirmateriality.Bothcompaniesare100%subsidiariesofMTAerospaceAG.
Non-consolidatedtotalrevenuesintheTelematics + SatelliteOperationsbusinessunitcametoEUR14.8millionin2010,downonthepreviousyear’sfigureofEUR18.6million.
Non-consolidatedsalesstoodatEUR14.3million(previousyearEUR17.1million).
Asofthebalancesheetdate,theOHBTechnologyGroup’sorderbacklogremainedataveryhighlevelofEUR1,160.5mil-lion(previousyearEUR834.0million),withtheSpaceSystems+SecuritybusinessunitaccountingforEUR600.5millionofthisvolume.Onthebalancesheetdate,orderbacklogstoodatEUR378.1millionintheSpaceTransportation+AerospaceStructuresbusinessunit,EUR60.4millioninthePayloads+Sciencebusi-nessunit,EUR92.1millionintheSpaceInternationalbusinessunitandEUR29.4millionintheTelematics+SatelliteOperationsbusinessunit.
Holding company
Space Systems + Security
Payloads + Science
Space International
Space Transportation + Aerospace Structures
Telematics + Satellite Operations
EBIT by business unit before consolidation
2010 in EUR millions
1.8
3.8
4.3
6.1
–0.8
7.5
*seeGlossary
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RESULTS OF OPERATIONS
WithconsolidatedEBITDAcomingtoEUR33.7million(previousyearEUR31.7million)andconsolidatedEBITtoEUR22.7mil-lion(previousyearEUR20.8million)intheyearunderreview,netprofitaftertaxstoodataroundEUR9.6million(previousyearEUR14.9million),whileearningspershareequaledEUR0.55in2010,downfromEUR0.96in2009.
Alltold,thefull-yearforecastfortotalrevenueswasexceededin2010,whileEBITDAandEBITguidancewasessen-tiallymet.Earningswereadditionallybuoyedbytheacquisitionandfirst-timeconsolidationofAntwerpSpaceN.V.AntwerpSpacewasconsolidatedforthefirsttimeeffectiveAugust1,2010onthebasisoftheinterimfinancialstatementsasofthatdate.First-timeconsolidationproducednegativegoodwillofEUR4.338million,whichwastakentoprofitandlossinaccor-dancewithIFRS3.34etseq.
Beforeconsolidation,theSpace Systems + Securitybusi-nessunitgeneratedEBITofEUR7.5millionin2010(previousyear:EUR3.4million),translatingintoanEBITmarginof3.6%(previousyear3.8%).Thisimprovementinearningswasattributabletothesharpriseintotalrevenuesinthisbusinessunittogetherwithsubstantialproductivitygains.
EBITinthe Payloads + SciencebusinessunitcametoEUR3.8million(previousyearEUR4.1million),equivalenttoanEBITmarginof7.1%(previousyear6.4%).
TheSpace InternationalbusinessunitcontributedEBITofaroundEUR1.8million(previousyearEUR3.7million).
EBITbeforeconsolidationintheSpace Transportation + Aerospace StructuresbusinessunitstoodatEUR6.1millionintheyearunderreview(previousyear:EUR10.6million),equiva-
lenttoanEBITmarginof4.4%(previousyear7.0%).Inthisbusi-nessunit,anadjustmenttothefairvalueofamajorprojectinresponsetoamorecautiousappraisalisthereasonforthelowerearningsintheyearunderreview.
TheTelematics + Satellite Operationsbusinessunitsus-tainedalossofEUR0.8millionattheEBITlevel(previousyearprofitattheEBITlevelEUR0.7million)chieflyasaresultoflowersales.
TheOHBTechnologyGrouprecordednetfinancialexpenseofEUR7.3millionin2010(previousyearEUR6.4million).TheotherfinanceexpenditureofEUR6.823million(previousyearEUR6.378million)includedinthisfigurechieflyrelatestointerestexpenditureonpensionprovisionsofEUR3.789million(previousyearEUR3.864million)andinterestondebtcapitalofEUR2.317millionatthelevelofonesubsidiary.
Theparent-companyfinancialstatementspreparedaccord-ingtoGermanGAAP(HGB)forOHBTechnologyAGcarryanunappropriatedsurplusofaroundEUR16.3millionfor2010.
TheManagementBoardandSupervisoryBoardwillbeaskingtheshareholderstoapproveadividendofEUR0.30persharefor2010atthisyear’sannualgeneralmeeting.
ASSETS AND FINANCIAL CONDITION
Intheyearunderreview,totalassetsrosefromEUR441.9milliontoEUR466.4million.GroupcapitalspendingtotaledEUR19.1millionin2010(previousyearEUR14.7million).
InventoriesroseinvaluefromEUR102.7milliontoEUR103.9million;ontheotherhand,prepaymentsreceivedfromcustomersclimbedtoEUR132.5million(previousyear:EUR127.1million).
Asset structure | Total assets 12/31/2010: EUR 466 million
In a percentage of total assets
Assets Shareholders‘ equity and liabilities
Property, plant and equipment 12 % 23 % Shareholders‘ equity
Other assets 12 % 16 % Pension provisions
Other non-current assets 3 %
Liquidity 18 %
Other non-current liabilities and provisions25 %
Other current assets 55 % Current liabilities36 %
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CashandcashequivalentsincludingsecuritieswerevaluedatEUR87.5millionasofDecember31,2010,upfromEUR76.8millioninthepreviousyear.Asubstantialnetinflowwasgener-atedfromoperatingactivitiesintheyearunderreview.Adetailedanalysisofthecashflowcanbefoundinthecashflowstatementintheconsolidatedfinancialstatements.Withitsheightenedcashandcashequivalents,theGroupwasabletofundallmainplannedinvestmentsinternally.
EquityrosebyEUR7.0millionoverthepreviousyear,standingatEUR105.2millionasofDecember31,2010(previousyearEUR98.1million).
Theequityratiostoodat23%asofthebalancesheetdate(previousyear22%).
ThepensionprovisionsofEUR74.3millionattheendof2010continuetoconstitutethemainitemontheright-handsideofthebalancesheetafterequity.
Thenon-currentfinancialliabilitiesofEUR42.8millionreflecttheprojectfinanceloansraisedbytheItaliansubsidiaryCarloGavazziSpaceS.p.A.
TradereceivablesofEUR140.1million(previousyearEUR132.9million)werematchedbytradepayablesofEUR67.4mil-lion(previousyearEUR57.0million).TheManagementBoardgenerallyconsidersOHBTechnologyAG’snetassetsandfinancialconditiontobesolid.
EMPLOYEES
2010sawsubstantialnewrecruitingparticularlyattheGroup’sBremenandMunichsites.Theawardofcontractsfornavigationandweathersatellitesinparticularnecessitatedsubstantialadditionstothehumanresourcesavailableatthesesites.Bygainingtheseprojects,theOHBGroupwasabletospuraware-
nesslevelsinthenationalandinternationaljobmarketsinpar-ticular.Asaresult,itwasabletorecruitaround130specialistsanduniversitygraduates.Onanencouragingnote,manynewemployeescamefromotherEuropeancountries,thusreflect-ingwithintheGrouptheinternationalprofileofthissectoranditscustomers.OnboardingprocessesprovidingnewemployeeswithinformationonstrategicandorganizationalmattersaswelltheGroup’scorporateculturewereimplementedattheBremenandMunichsitestoassistinsuccessfulintegration.
Itwasalsopossibletocoverthehighpersonnelrequire-mentsparticularlyatOHB-SystemAGinBremenbymeansofinternalGroupsharingofhumanresources.Thus,OHB-Systemisbenefitingfromatemporarysecondmentofover30expertsfromItalianaffiliateCarloGavazziSpace.Inthisway,animportantpersonnelpolicyinitiativewhichhadbeenadoptedinthepreviousyearwasimplementedinlinewithrequirements.
AsofDecember31,2010thenumberofemployeeswithintheOHBTechnologyGrouphadincreasedbyaround9%com-paredwithDecember31,2009to1,677(previousyear1,546).
RESEARCH AND DEVELOPMENT
Intheyearunderreview,OHBTechnologyspentroughlyEUR14.3million(previousyearEUR13.0million)onresearchanddevelopment(R+D).
PartoftheR+DactivitiesarefundedbyvariousinstitutionssuchastheEuropeanUnion,theGermanFederalGovernmentandtheGermanstates.InaccordancewithEuropeanUniondirectives,subsidiesaccountforbetween25%and75%ofthetotalcostsdependingontheproximitytocompletionofthedevelopmentproject.
Staff
Total personnel by business units 12/31/2010 Total personnel 1,677
264
348
267
Telematics + Satellite Operations
Space Transportation + Aerospace Structures
Space Systems + Security
Payloads + Science
Space International
Holding company 7
81
710
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IntheSpace Systems + Securitybusinessunit,oneofthemainfocuseswasontechnologyinconnectionwithenhancingandfuture-proofingtheSGEOplatformparticularlyinthelightofcommercialcustomers’requirements.Otherkeyaspectsentailedradartechnologiesforthepurposeofsecuringthetechnologicalfacilitiesrequiredforthefollow-upSAR-Lupesystem.Asinthepreviousyear,anumberofpublic-sectorgrantswerereceivedfor“classic”spacetechnologyactivitiessuchasBionaorearthobservationapplicationssuchasDeMarine.
R+DactivitiesinthePayloads + Sciencebusinessunitcen-teredforthemostpartonadditionalenhancementstostationsignalingtechnologyandbasicresearchinthespacesegments.
IntheSpace Internationalbusinessunit,attentionwaspri-marilypaidtothedevelopmentandutilizationofmicro-technol-ogiesandnewinnovativematerialsforsubsystemsandpay-loadsincludingdatahandlingandtransmission.Afurtherfocuswasplacedonactivitiesfortechnologiesrelatedtothefutureuseofopticaltelescopesfordetectingandmonitoringnear-earthobjects(NEOs)andspacedebris.
ResearchanddevelopmentactivitiesatLUXSPACEconcen-tratedonthedevelopmentofanewmicrosatelliteplatform(Espresso)forapplicationsforthesatellite-basedmonitoringofshipping(AIS).
TheSpace Transportation + Aerospace Structuresbusi-nessunitparticularlyperformedthefollowingdevelopmentworkonnewproducts,productenhancementsandcostreductions.
Inthelaunchercomponentssegment,varioussystem-tech-nologyandproduction-relatedtaskswereaddressed.Effortstoamasssubsystemcompetenceforspacetankswerecontinuedinsub-projectsdevotedtocryotanks,polymerlinerforhigh-pressuretanksandcryogenictankinsulation.
TechnicalpreparationsfortheAriane5MElauncherconfig-urationwereprimarilydirectedattheupperstagetankstogetherwithattentiontostructuralissuessuchastheAriane5frontskirtJAVE.
Inthesatellitetankssegment,theinterrelationshipbetweenmetallinersandCFRPwrappingwasoptimizedbyadjustingthematerialcombinationsandtheprocessparame-tersbasedonexperiencegainedfromthedevelopmentoftheAlphabustank.
MTAerospaceisalsoworkingonestablishingbaseskillsinmanagementsystemsforstorablepropellants.Theaimistodevelopbasicknowledgeoftherequirements,whichpropellantmanagementsystemsmustsatisfy,andhowtheyfunction.
Intheaviationsegment,theuseofcompositematerials(CFRP)isgrowinginimportanceinaircraftengineeringthankstotheirimprovedresistancetocorrosionandgreaterdurabilitycomparedwithconventionalaluminumalloys.MTAerospaceisworkingsteadilyonenhancingitsskillsinthedevelopmentandfabricationofCFRPcomponents.
Itholdsaleadingpositioninfreshandwastewatertanksforcommercialaircraft.Tostrengthenitscompetitiveness,itisexploringcost-cuttingmeasuresintheproductionanddefinitionofadvantageoustankconfigurations(tanksuspension).
ThemainfocusofresearchanddevelopmentactivitiesintheTelematics + Satellite Operationsbusinessunitconcernedthedevelopmentofbatterymanagementsystemsforautomo-tiveandmilitaryuse.
QUALITY, ENVIRONMENT MANAGEMENT AND DATA PROTECTION
Qualitymanagementismonitoredandregularlyupdatedonanon-centralizedbasisbytheindividualcompanies.
OHB-SystemAGmonitorsqualitymanagementforOHBTechnologyandthenecessarycurrentcertificatesforthefollowingcompanies:• OHB-SystemAG• OHBTeledataGmbH• megatelGmbH• Kayser-ThredeGmbH• LUXSPACESàrl• MTAerospaceAG• CarloGavazziSpaceS.p.A.,• AntwerpSpaceN.V.
Legalresponsibilityforimplementationofthecertificaterequirementsinproduct-relatedoperationalqualityprocessesrestswiththeindividualcompanies.
Certificationencompassesdistribution,systemsmanage-ment,development,procurement,productionandmaintenanceofproductsforspaceandenvironmentaltechnology,informationandcommunicationstechnologyaswellassoftwareproductsandservices.
OHB-System AGEN ISO 9100:2003 quality management system (aerospace/aeronautics) Incl. EN ISO 9001:2008 quality management system (base certification)OHB-Systemiscertifiedforthedistribution,systemsmanage-ment,development,procurementandproductionandservicingofspacetechnologyproductsandprojects.ThiscertificationinvolvesinclusionontheBDLIsupplierlistandintheglobalOASISdatabase.ThecertificateQS.3674HHissuedbyGermanischerLloydremainsinforceuntilMay2012.
ThenewEN9100:2009standardincludingtheIAQCrequire-mentswillbeadoptedinautumn2011andmustbecertifiedbyJuly1,2012.
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AQAP Standards (military and NATO projects)TheGermanFederalOfficeofDefenseTechnologyandPro-curement(BWB)hasissuedacertificateformilitaryaerospaceandaviationproductsandprojectsinaccordancewithAQAP2110(qualitymanagement)andAQAP2210(softwarequalityassurance).
ThetermofthiscertificateistiedtothetermoftheISOcertificate.
OHB Teledata GmbHISO 9001:2008 quality management system (base certification)OHBTeledataiscertifiedfordistribution,procurement,devel-opment,productionandtheprovisionofservicesfortelematicsandtelecommunicationsproductsandprojects.
ThecertificateQS-2276HHissuedbyGermanischerLloydremainsinforceuntilJuly2011.
ISO 14001:2004 environmental managementOHBTeledatahasacertifiedenvironmentalmanagementsystem.
ThecertificateEM-4595HHissuedbyGermanischerLloydremainsinforceuntilNovember2011.
megatel GmbHISO 9001:2008 quality management system (base certification)megateliscertifiedforthedistribution,developmentandprovisionofservicesforinformationandcommunicationstech-nology.
ThecertificateQS-6080HHissuedbyGermanischerLloydremainsinforceuntilJuly2011.
Kayser-Threde GmbH ISO 9001:2008 quality management system (base certification)Kayser-Thredeiscertifiedfordevelopment,productionanddistributionofsystemsforscience,spacetransportationandindustrialapplications.
DEKRAcertificateNo.41294186/5remainsinforceuntilJuly2012.
ISO 14001:2004 environmental managementObservanceoftheenvironmentalmanagementrequirementsstipulatedbythisstandardisoverseenbyanenvironmentalmanagementofficer;formalcertificationisnotnecessary.
LUXSPACE Sàrl ISO 9001:2008 quality management system (base certification)LUXSPACESàrliscertifiedfordevelopment,procurementanddistributionofspacetransportationcomponentsandsystems.
ThecertificateQS-4930HHissuedbyGermanischerLloydremainsinforceuntilJune2011.
MT Aerospace AG EN ISO 9100:2003 quality management system (aerospace/aeronautics) ISO 9001:2008 quality management system (base certification)MTAerospaceiscertifiedforthedevelopmentandproductionofcomponentsandsubsystemsforaerospace,aviationanddefenseaswellasforindustrialapplications.
DEKRAcertificateNo.880109012/1remainsinforceuntilFebruary2012.
ValidpermitshavebeenissuedbytheGermanFederalAviationOfficeforproduction(LBAWASAPart21)andformain-tenance(LBAEASAPart145).
ThetermofthesecertificatesistiedtothetermoftheISOcertificate.
ThenewEN9100:2009standardincludingtheIAQCrequire-mentswillbeadoptedinautumn2011andmustbecertifiedbyJuly1,2012.
Carlo Gavazzi Space ISO 9001:2008 quality management system (base certification)CarloGavazziiscertifiedforresearch,development,productionandtheprovisionofservicesforaviationandaerospaceproductsandprojects.
QuaserCertificazionicertificateNo.869remainsinforceuntilFebruary2012.
Antwerp Space N.V. ISO 9001:2000 quality management system (base certification)FollowingtheseparationfromThalesAleniaSpaceETCAin2010,theENISO9100:2000certificationforthequalitymanage-mentsystemhasexpired.
RecertificationinaccordancewithENISO9001:2008isplannedformid-2011.
Data privacyAudit in accordance with the German Federal Data Privacy ActTheprivacyofpersonaldatainaccordancewiththeGermanFederalDataPrivacyActasmostrecentlyamendedissafe-guardedbythedataprivacyofficersattheindividualcompanysiteswhoareformallyregisteredwiththeresponsiblestatedataprivacyagencies.
ThecompaniesbasedinBremenareoverseenbyOHBTechnology’sdataprivacyofficer.TherequirementsstipulatedbytheGermanFederalDataPrivacyActaresetoutindataprivacypoliciesandruleswhicharebindingforallcompaniesbasedinBremen.
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REACh (Registration, Evaluation, Authorization of Chemicals)EUrulescameintoeffectonJanuary1,2007governingthemanagementofchemicalsubstancesintheEUforallindustrialproducts.Theserulesprimarilysetoutregulationsforthereg-istrationandmonitoringofhazardoussubstancesaccountingformorethan0.1percentagebyweightintheproduct(accord-ingwithregistrationintheREAChdatabase).
AjointstatementdatedMay13,2009issuedbythequalitymanagersofGermanspacetechnologycompaniesundertheleadmanagementofDLRstatedthatthisfigurewasnotrele-vantforspacetechnologyproducts.
Accordingly,theREAChrequirementsarenotapplicabletotheOHBTechnologyGroupcompaniesinGermanyatthisstage.
Process qualifications and certificationOHB-SystemAG,Kayser-ThredeandCarloGavazziSpacewillbecompletingqualificationtestingforweldingprocessesforsurface-mounteddevices(SMDs)with352legsinaccordancewiththeESAstandardsin2011.ThecorrespondingESAcertifi-cationpermitselectroniccomponentstobeproducedonastate-of-the-artbasiswithouttheuseofexternalcontractors.
SIGNIFICANT EVENTS OCCURRING AFTER THE END OF THE PERIOD UNDER REVIEW
OnFebruary10,2011,MTAerospaceHoldingGmbHsignedacontractfortheacquisitionoftheenginecomponentssupplierAerotechPeissenbergGmbH&Co.KGtogetherwithitsaffiliatesinFranceandtheCzechRepublicwithretroactiveeffectfromJanuary1,2011.TheselleristheDrostenGroup,Grünwald.Withstaffnumberingsome490,AerotechPeissenbergtogetherwithitsaffiliatesgeneratedsalesofaroundEUR46millionin2010.OrderreceiptswerevaluedatroughlyEUR86millionattheendof2010.ThecompanyisexpectedtobeconsolidatedasofMarch1,2011.
AerotechPeissenbergproducessensitivecomponentsmadefromheat-resistantnickel-basedalloysandtitaniumforaircraftenginesandindustrialgasturbines.
Viathisstrategicacquisition,theOHBGroupisbroadeningitsbusinessactivitiesintheaviationsectorwiththeaimofimprovingitspositioninnationalandinternationalaviationbusinessandharnessingnewmarketpotential.
OUTLOOK
TheOHBTechnologyGroupwillremainonitsgrowthtrajectoryin2011again.
Space Systems + SecurityIn2011andbeyond,theSpaceSystems+SecuritybusinessunitwillbeconcentratingoncontinuedworkontheGalileo*,SGEO,HISPASATAG1,EnMAPprojectsaswellascommencingtheMTGproject.
ThefullcontractfortheMTGprojectisexpectedtobeawardedinseveralstagesuntilthebeginningof2012.ThiswillalsoincludecontractingouttheIRSinstrument(infraredsounder)toKayser-ThredeGmbH.
Acontractisexpectedtobeawardedforthecarrier/orbiterintheEXOMARSprojectbymid-year.Meanwhile,aninvitationforproposalsfortheESASentinel5Pprojectshouldbeissuedinthesecondhalfoftheyear.
PreliminaryprojectworkandstudieswilladdresssubjectssuchasMetOpSecondGeneration,thefollow-upsystemtoSAR-Lupe,GMESSecurityandDEOS,amongotherthings,in2011.Inthisconnection,theSAR-Lupereplacementisofcentralstrategicimportance.Thecustomerplanstoissueaninvitationforproposalsin2012,withthecontracttobeawardedin2013.
FurtherstudiesareexpectedonCarbonSat,ESAscientificmissionsandtheDLRHeinrich-Hertzsatelliteproject.
Asinprioryears,furthercontractsshouldbereceivedfromESAforthescientificoperationoftheInternationalSpaceStation.Continuedrecruitingandadjustmentstoorganizationalstructures,infrastructureandresourceswillremaincoreissuestoensurethatthesegoalscanbeachieved.
BudgetarydecisionsintheEUandGermanyandonthepartofESApointtostableunderlyingconditionsandasufficientlyfirmbasisforfutureplanning.Withitscurrentprojectsandprograms,OHB-SystemAGisideallypositionedtosafeguardthelevel,whichithasachievedonasustainedbasis,andtocontinuegrowingsuccessfully.
Payloads + ScienceThespacetechnologysegmentiscontinuingtopursueastrategyofconcentratingonselectedareasforwhichitholdstheneces-sarytechnologyandskills.Thepurposeofthisistoprepareonascheduledandlong-termbasistheforsystemleadershipinthesmallandmicrosatelliteprogramsaswellasthedevelop-mentofcomplexscientificinstruments.ThisapproachhasprovedtobesuccessfulandwasconfirmedlastyearwiththenewbusinessachievedinconnectionwiththeMTGprogram.
Lookingaheadoverthenextfewyears,afurtherincreaseintheGermanspacebudgetwillcreatefavorableconditionsparticularlyinthenationalspaceprogramwithanincreasedlikelihoodofprojectsbeingimplemented.Kayser-Thredehaspositioneditselfwellinthisrespectandwasabletosecurepreliminarynewbusinesslastyear.Overthenextfewyears,itstandsagoodchanceofbeingawardedcontractsforvariousprojects.
InadditiontostabilizingDLRbusinessatahighlevel,effortsdirectedatgarneringmorecontractsunderESApro-gramshavebeguntobearfruit.Thus,withitsbroad-basedentryintotheearthobservationprogram,itwillwithaveryhighdegreeofprobabilitybeabletogaincontracts,whichwillensurefullcapacityutilizationforyearstocome.
Basedontheexperiencederivedfromsecuredatatrans-missionwithitscustomerDBEnergie,theprocesscontrol
*seeGlossary
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technologysegmentisseekingtoextenditsbusinessintheautomationmarketinparticular.Keyaspectshereconcernsafetyandsecurityapplications,whichprovideabasisforgain-ingafootholdinexistingmarketsincludingviapartnershipsenteredintoforthispurpose.
Space Transportation International Withrespecttonationalprograms,CarloGavazziSpaceplanstoplayamajorroleinthedevelopmentofearthobservation‘flagship’projectsandscientificpayloadsinItaly.ThisisinlinewithASI’splanstosignificantlyconcentratespendingatthenationallevelontheimplementationofsignificantinfrastruc-turesthatthecountryrequiresforitsnationalsecurityandforthedevelopmentofservices.CarloGavazziSpacealsoplanstoreinforceitsroleataEuropeanlevelleveragingitspositionwithinOHBTechnology.
AntwerpSpaceplanstoextendtherangeofitsactivitiestoincludethedevelopmentofflighthardwareassociatedtothetelecommunicationsubsystemsofsatellites.Inthiscontext,thecompanywillbeseekingtoparticipateinhighlyvisibleexplora-tionprograms.
LUXSPACESàrlwillbesteppingupitssmallsatelliteandAISpayloadactivities.
Space Transportation + Aerospace StructuresIntheSpaceTransportationsegment,theexistingorderback-logwillensurecontinuedproductionanddeliveryofpartsfortheAriane5in2011and2012.Spacetechnologydevelopmentworkwillcontinuetofocusoncrucialtechnologiesforthepro-ductionofthenewcryogenicAriane5MEupper-stagetank,withfurthercontractslikelytobeawardedin2011and2012.
ProductionoffreshandwastewatertanksforAirbusshouldresultinaslightincreaseinaviationbusiness.Develop-mentofwatertanksforthenewAirbusA350isexpectedtobecompletedin2011.Thedeliveryoftwoserialairinlet/outletsystemsisplannedfortheA400Mmilitarytransporter.
Lookingaheadoverthenexttwoyears,MTAerospaceAGexpectstocontinueoperatingprofitablyprovidedthatArianebusinessremainssuccessfulandnounforeseenextraordinarystrainsonearningsarise.
Telematics + Satellite OperationsThecommercialvehiclemarketwillcontinuetorecoverin2011,withsalesfigurerisingmoderately.Inaddition,OHBTeledatahasmadeuseofthephaseofstagnationtodevelopnewhard-waretechnologiesinon-boardcomputersandnavigationsys-temsand,ifjustifiedbydemand,willbeabletolaunchtheseinthemarketinthefuture.ToreduceitsdependencyontelematicsbusinesswithcommercialvehicleOEMs,OHBisengaginginfurtherprojectsintheareaofbatterymanagementsystemstoturnthisintoacorecompetence.Lookingforward,thisnewbusinessistogenerateasubstantialpartofsalesinthetele-maticssegment.
Outlook for the Group as a whole in 2011TheOHBTechnologyGroupexpectstotalrevenuestorisetooverEUR600millionfor2011,accompaniedbyanincreaseinEBITDAtomorethanEUR41million.EBITshouldalsoclimbtooverEUR27millionin2011.DespitethehighorderbacklogandresultantfavorablecapacityutilizationacrosstheGroupasawhole,preciseguidancefor2012isdifficult.Evenso,wefeelconfidentinassumingfurthergrowthofmorethan10%inallmainfinancialparametersinthatyear.
Itshouldbeexpresslynotedinconnectionwithforward-lookingstatementsthatactualeventsmaydiffermateriallyfromexpectationsoffutureperformance.
INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM
Thecontrolandriskmanagementsystemformsanintegralpartofthecorporate,planning,accountingandcontrolpro-cessesandconstitutesamaterialcomponentofthemanagementsystem.TheProductQualityandPurchasingdepartmentsparticularlymonitorsupplierssothatoperatingandtechnicalriskscanbeassessedmorereliablyandsuitableprecautionstaken.MonthlyandquarterlyreportingconstitutesanintegralpartofOHBTechnologyAG’sriskmanagementoperationsandhasbeenwidenedtoincludealloftheGroup’scompanies.Group-widecontrollinginstruments(e.g.businessintelligencesoftware)areusedforreportingpurposes.Onekeyaspectcon-cernscomparisonsoftheactual/requiredfiguresanddeviationanalyses.
Budgeting,regularforecastsandongoingreportingdiscus-sionssupplementstandardizedreportinginthefivebusinessunits.
Appropriateprecautionsaretakenintheaccountingandconsolidationprocesstoensurefullimplementationofthedouble-sign-offprinciple.AccessrestrictionstotheITsystemensureahighdegreeofdatasecurity.Inaddition,theaccount-ingsystemcomplieswiththerequirementsofpublic-sectorcontractawardingrules.
Customerpaymentpracticesaremonitoredonanongoingbasistominimizefinancialrisks.Inadditiontoamulti-levelremindersystem,controllingmethodsincluderegularreportstotheManagementBoard.
TheOHBGroup’scustomerbasecomprisesalargepropor-tionofpublic-sectorcustomersbothdirectlyandindirectly.Forthisreason,theriskofpaymentdefaultsisextremelysmall.Overthepastfewyears,therehavebeenvirtuallynopaymentdefaults,meaningthatnoadjustmentstoorprolongationofindividualreceivableshavebeennecessary.
Paymentsonaccountreceivedcomprisepartpaymentsremitteduponthecompletionofspecificprojectmilestones.Inthisway,itispossibletominimizeliquidityrisksandworkingcapitalrequirements.
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OPPORTUNITY AND RISK REPORT
OHBTechnology’sManagementBoardpermanentlymonitorstheGroup’soperating,marketandfinancialrisksandisintegratedinallmainbusinessandcapexdecision-makingprocessesinordertoensuretheGroup’ssustainedbusinesssuccess.
TheriskmanagementsystemusedbytheOHBGroupisprimarilysupportedbythecentralQualityManagementandFinance/Controllingdepartments.Assistedbythecentraldepartments,theManagementBoardobservesandanalyzestrendsinthesector,marketandeconomyasawholeonanongoingbasis.
Thebasisforriskmanagementisformedbyadetailedmonthlyreportforoverseeingordersandcosts.Reportingalsocoversallbusinessdevelopment,researchanddevelopmentactivitiesandallowspotentialriskstobeidentifiedatanearlystage.
ThesubsidiariessubmitstandardizedmonthlyreportstoOHBTechnologyAGcoveringallprocessesandrisksofrelevance.
Theindividualbusinessunitsdeploydifferentsoftwaresys-temsforgeneratingreports,e.g.SAPorbusinessintelligencesolutions.
QualitymanagementforthemanagementandqualitymanagementprocessesaccordswithDINENISO9001:2000andENISO9100:2003andisdocumentedinamanual;theManagementBoardreceivesannualGroupqualityreports.
WeconsiderthefollowingtypesofrisktoberelevantforOHBTechnologyAG’sbusinessactivities:
Sector risks, risks in underlying conditionsTheSpaceSystems+Security,Payloads+ScienceandSpaceTransportationInternationalbusinessunitsprimarilyworkforpublic-sectorcustomers.Accordingly,orderreceiptsdependonpublic-sectorbudgets.Thismarkethasbeenconsolidatingoverthepastfewyears.However,thissituationis,ifanything,favorableforOHBTechnologyAGinviewofitsspecialpositionasaGermansystemsproviderforspacetechnology.
Thetelematicssectorisalsowitnessingmarketconsolida-tion,asaresultofwhichthenumberofcommercialvehicleproducershasdroppedtoahandfulinthepastfewyears.ThishascausedthenumberofpotentialOEMcustomerstoshrink.Therehasalsobeenconsiderableconsolidationonthepartofourcompetitors.ThefalloutfromtheglobalfinancialcrisisisstillaffectingtheeconomicsituationofcommercialvehicleOEMsand,hence,theprospectsforbusinessinthetelematicssector.
Strategic risksTheSpaceTransportation+AerospaceStructuresbusinessunitisheavilyexposedtothefortunesoftheAriane5program.IntheSpaceSystems+Securitysegments,riskscurrentlyarisein
connectionwiththein-orbitfunctionalityoftheSAR-LupeandORBCOMMsatellites.Afurthermaindeterminantisthesuccessfulcompletionofdevelopmentprojectswithinthestipulatedperiodsandinlinewiththecontractualprices.
Sourcing risksThecostofrawmaterials,particularlyforboosterproduction,remainedsteadyin2010.Thedeliveryperiodsagreeduponwiththesuppliersareverylargelyobserved.Thesourcingsituationformechanicalpartshaseased.
TheOHBGroupisaddressingthissituationbymonitoringthebuy-sidemarketcontinually,trackinginventoriesconstantlyandincreasinglytakingmeasurestosafeguardthelocalavailabilityofsupplies.Inaddition,itiscontinuingtotapnewsources.TheSpaceSystems+SecurityandPayloads+Sciencebusinessunitsareexposedtofewsupply-siderisksinthesourcingofsubsystems.Thereisgenerallysufficientcompeti-tionamongstsupplierswithlittlelikelihoodofdeliveryshort-falls.
Project risks Theriskmanagementsystemusedforbid-costingandongoingprojectmanagementinvolvesregularescalatedreportingtotheprojectmanagers,thedirectorsandtheManagementBoardofOHBTechnologyAG.
AllprojectsaresubjecttoregularreviewbytheManagementBoardandformpartofacontinuousmonitoringprocesscoveringtechnicalperformance,schedulecomplianceandbudgetchecking.
IT risksTheGroup’sbusinessprocessesincreasinglyrelyoninforma-tionservicesandsystems.TheprimarypurposeistoensuresmoothoperationsofallITsystemsandnetworkstosupportdevelopmentandproductionprocessesfreeofanyerrorsandwithmaximumefficiency.
AfurtherkeyaspectoftheITsecuritystrategyistocontrolaccesstodataandtomonitordatatrafficbothinsideandoutsidetheenterprise.AllmainITsystemsarefittedwiththelatestantivirussystemsandareautomaticallyupdatedwiththelatestoperatingsystemsandapplications.
Thisyear,thefocuswillbeonmodernizingtheinfrastructureattheBremensiteandtovirtualizeservers.Asfutureprojectswillbeincreasinglyhandledonanenterprise-widebasiswithintheOHBGroup,ITplanningandstrategyispayingattentiontoensuringthatallsitesusethesamestandardsandsoftwaretoolswhereverthisisfeasibleandappropriate.
Financial risksMostgoodsandservicesprocuredareinvoicedineuro.Foreign-currencytransactionsinthedollarregionmayresultintranslationgainsorlosses.Intheaviationsegment,thedollar-denominatedordersandreceivableswerehedged.Thesecuri-
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tiesentaillong-terminvestmentswithacceptablerisks.Acon-clusiveassessmentoftherisksituationisnotpossibleduetothecurrentsituationinthefinancialmarkets.Furtherinforma-tionisavailableintheIFRS7disclosurescontainedinthenotestotheconsolidatedfinancialstatements.
Workingcapitalrequirementscanbereducedsubstantiallybyprepaymentsreceivedforpartservicesprovided;asaresult,liquidityriskscanbeconsideredtobecontrollable.
Personnel risksTheOHBGroupemploysalargenumberofhighlyqualifiedpeople.Itssuccesshingesonthemotivationanddedicationoftheseemployees.However,Groupexpertiseisspreadovermanypeople,meaningthatthereisonlyverylimiteddepen-denceonindividualspecialists.StafffluctuationislowattheOHBGroup.EmployeenumbershaverisenasaresultoforganicgrowthparticularlyintheSpaceSystems+Securitybusinessunit.Despitetheflourishinglabormarketinthehighlyspecializedaviationandaerospaceindustry,theOHBGroupwasabletofindsuitablespecialiststocoveritspersonnelrequirements.Lookingforward,itwillbenecessarytostepupeffortstocovergrowingpersonnelrequirements,particularlybymeansofinternationalrecruiting.Trainingandskillsdevel-opmentalsoprovideanimportantinstrumentforminimizingpersonnelrisks.
SummaryThroughout2010,theOHBTechnologyGroup’sexposurewasforthemostpartconfinedtotherisksdescribed.InthelightofcurrentmarkettrendsandtheoutlookfortheCompany’sbusiness,itsorderbackloganditsfinancialsituation,theMan-agementBoardconsidersfutureriskstotheGroupasagoingconcerntobeacceptable.
COMPENSATION REPORT
ThecompensationpaidtothemembersoftheManagementBoardcomprisesfixedandvariablecomponents.TheCompen-sationReportincludedintheCorporateGovernanceReportonpages62-63formsanintegralpartoftheManagementReport.Thebasicelementsofthecompensationsystemaredescribedinthecorporategovernancereportaswellasinthenotestothefinancialstatements.
RELATED PARTIES REPORT
TheOHBTechnologyGroupiseffectivelycontrolledbytheFuchsfamilyviaitsdirectandindirectequityinterests.Forthisreason,theManagementBoardhaspreparedarelatedpartiesreportinaccordancewithSection312oftheGermanStockCorporationAct,whichwasauditedandcertifiedaspartoftheauditproceduresfortheannualfinancialstatements.Inthisrelatedpartiesreport,theManagementBoardmakesthefol-lowingdeclaration:“NotransactionsoractivitiesimpairingtheCompany’sinterestspursuanttoSection312oftheGermanStockCorporationActhavebeenengagedin.”
DISCLOSURES IN ACCORDANCE WITH SECTION 315 (4) OF THE GERMAN COMMERCIAL CODE
Breakdown of the subscribed capital (No. 1)IssuedcapitalstoodatEUR17,468,096.00onthebalancesheetdateandwasdividedinto17,468,096no-par-valuebearershares.
Restrictions to voting rights or the transfer of shares (No. 2)Prof.Dott.Ing.h.c.ManfredFuchs,ChristaFuchsandMarcoR.Fuchs,whoarealsoshareholdersofVOLPAIABeteiligungsGmbH,andVOLPAIABeteiligungsgesellschaftmbHintheircapacityasshareholdersofOHBTechnologyAG,enteredintoapoolingcontractonDecember20,2001providingforthecoordi-natedexerciseofvotingrightswithrespecttopresentandfutureshareholdings.OnFebruary4,2009,thepartiessignedanaddendumtothispoolingcontractimposingonthemrestric-tionswithrespecttothesaleofthesharesheldinthepoolingcontract.OnJuly10,2009,thepartiessignedarevisedversionofthepoolingcontract.RomanaFuchsMayrhoferjoinedthispoolinJanuary2010.Atotalof69.72%oftheCompany’sissuedcapitalisheldinthispoolingcontract.
Shares exceeding 10% of the voting capital (No. 3)Asofthebalancesheetdate,Prof.Dott.Ing.h.c.ManfredFuchsholds21.54%andMarcoR.Fuchs15.37%ofOHBTechnologyAG’ssubscribedcapital.VOLPAIABeteiligungsGmbHholdsa
61
OHBTechnologyAG|2010
Group management report
further21.35%oftheCompany’sshares.TogetherwiththesharesheldbyChristaFuchs(8.59%)andRomanaFuchsMayrhofer(2.86%),69.72%oftheCompany’ssharesaresubjecttoapoolingcontractprovidingforthecoordinatedexerciseofvotingrightsasofthebalancesheetdate.
Statutory stipulations and provisions contained in the Company’s bylaws with respect to the appointment and dismissal of members of the Management Board and amendments to the bylaws (No. 6)WithrespecttotheappointmentanddismissalofmembersoftheManagementBoard,referenceismadetothestatutorypro-visionscontainedinSections84and85oftheGermanStockCorporationAct.Inaddition,Article7(1)and(2)ofthebylawsofOHBTechnologyAGintheversiondatedMay26,2010stipulatethattheSupervisoryBoardistoappointthemembersoftheManagementBoardanddeterminetheirnumber.AmemberoftheManagementBoardmaybeappointedChairman.Inaddi-tion,theSupervisoryBoardisempoweredtoappointmembersoftheManagementBoardasdeputytotheChairmanoftheManagementBoard.
TheprocedureforamendingthebylawsisgovernedbySections133,179oftheGermanStockCorporationAct.
Article20ofOHBTechnologyAG’bylawsalsoempowerstheSupervisoryBoardtomakeamendmentstothebylawsaffectingonlytheirversion.
Powers of the Management Board to issue or buy back shares (No. 7)AttheannualgeneralmeetingheldonMay19,2010,theshare-holderspassedaresolutionauthorizingtheManagementBoardtobuybackupto10%oftheCompany’ssharecapitalinexis-tenceasofthedateoftheresolutionuntilMay18,2015.
AuthorizationwasgrantedtousetheCompany’ssharesforallpurposespermittedbylawincludingbutnotlimitedto:• theplacementoftheCompany’ssharesinforeignstock
exchanges• theacquisitionofallorpartsofothercompaniesorshares
therein,• offeringandtransferringsharestotheemployeesofthe
CompanyorothercompaniesrelatedwithitinaccordancewithSections15etseq.oftheGermanStockCorporationAct.
TheCompanyheld66,954sharesastreasurystockasofthebalancesheetdate.Thisisequivalenttoaround0.38%ofitssharecapital.
AttheannualgeneralmeetingheldonMay19,2010,theshareholdersauthorizedtheManagementBoardtoincreasewiththeSupervisoryBoard’sapprovaltheCompany’ssharecapitalbyuptoEUR8,734,048.00onacashornon-cashbasis
byissuingnewsharesonceorseveraltimesonorbeforeMay18,2015.ThenewsharesmayalsobeissuedtotheCompany’semployees.Inaddition,theCompany’sManagementBoardwasauthorized–subjecttotheSupervisoryBoard’sapproval–toexcludetheshareholders’subscriptionrights• forfractionalamounts;• forpartoftheauthorizedcapitaluptoamaximumofEUR
1,746,809.00providedthatthenewsharesareissuedinreturnforcashcapitalcontributionsatapricenotmateriallylessthanthestock-marketprice;
• forapartoftheauthorizedcapitaluptoamaximumofEUR8,734,048.00providedthenewshares
–areissuedasconsiderationfortheacquisitionofallorpartofothercompaniesorentitiesorotherassetsandsuchacquisitionisintheinterestsoftheCompanyorinreturnforacashcapitalcontributionandprovidedthatsuchacquisitionisintheinterestsoftheCompany;or
–orareissuedasconsiderationforcashcapitalcontributionstohavetheCompany’sstocklistedinaforeignmarketinwhichithaspreviouslynotbeenadmittedtotrading
TheManagementBoardisadditionallyauthorizedsubjecttotheSupervisoryBoard’sapprovaltodeterminetheextentandnatureoftheoptionrightsandtheotherconditionsofissue.
Pleaserefertothecorrespondingpartsofthenotesontheconsolidatedfinancialstatementsforfurtherinformation.
CORPORATE GOVERNANCE DECLARATION
ThecorporategovernancedeclarationwasplacedonOHBTechnologyAG’swebsiteinMarch2011.TheInternetaddressis:www.ohb-technology.de>InvestorRelations>CorporateGovernance>DeclarationonCorporateGovernance
62
OHBTechnologyAG|2010
Corporate governance
InJune2002,acommissioninstalledbytheGermanFederalGovernmentpublishedrecommendationsknownjointlyasthe“GermanCorporateGovernanceCode”settingoutstandardsofconductandbehaviorforcompanies.CorporategovernanceincludestheentiremanagementandsupervisionsystemandseekstomaketherulesapplicableinGermanymoretransparenttonationalandinternationalinvestorsintheinterestsofstrengtheningconfidenceinthemanagementofGermancom-panies.TheSupervisoryBoardandtheManagementBoardofOHBTechnologyAGarecommittedtotheprinciplesembodiedintheCodeasameansofensuringvalue-orientedcorporategovernanceandsupervisionandwelcometheadoptionoftheseprinciplesinGermany.
Compensation reportThefollowingcompensationreportindividualizesthecompen-sationpaidtothemembersoftheManagementBoardofOHBTechnologyAGandformspartoftheGroupmanagementreportfor2010.Asamatterofprinciple,thecompensationpaidtothemembersoftheManagementBoardcomprisesfixedandvari-ablecomponents.TheservicecontractscurrentlyinforcewiththemembersoftheManagementBoard(duration:July1,2009untilJune30,2012)provideforvariablecompensationtobedeterminedonthebasisofadirectshareinprofit(percentageofEBT).Thereiscurrentlynoprovisionforanyshare-basedcompensationcomponentsorcompensationcomponentswithalong-termincentive.IntheeventofthedeathofaManagementBoardmember,hissurvivingdependentsareentitledtoreceivecontinuedpaymentofthatmember’sfixedcompensationforafurtherperiodofsixmonths.
ThecompensationpaidtothemembersoftheManagementBoardbreaksdownasfollows:Thetotalfixedcompensationpaidin2010cametoEUR0.751million(previousyearEUR0.680million),whilethevariablecomponentequaledEUR0.631million(previousyearEUR0).ThebreakdownbymembersoftheManagementBoardisasfollows:Mr.MarcoR.FuchsreceivedasumofEUR0.287million(previousyearEUR0.251million)asfixedcompensationincludingallbenefitsaswellasadvancestowardshealthandpensioninsuranceandanon-cashbenefitintheformofacompanycaraswellascontribu-tionsofEUR1,700(EUR1,700)towardsanendowmentpolicy.VariablecompensationequaledEUR0.270million(previousyearEUR0).Prof.Dott.Ing.h.c.ManfredFuchsreceivedasumofEUR0.271million(previousyearEUR0.253million)asfixedcompensationincludingallbenefitssuchasadvancestowardshealthandpensioninsuranceandanon-cashbenefitinthe
formofacompanycar.VariablecompensationequaledEUR0.270million(previousyearEUR0).Inaddition,paymentsofEUR37,000weremadebyOHB-SystemAGpursuanttoapen-sioncommitmentassumedin1988underwhichheistoreceiveasumofEUR3,000amonthuponturning65years.Mr.UlrichSchulzreceivedasumofEUR0.190million(previousyearEUR0.173million)asfixedcompensationincludingallbenefitsaswellasadvancestowardshealthandpensioninsuranceandanon-cashbenefitintheformofacompanycaraswellascontri-butionsofEUR1,200(EUR1,200)towardsanendowmentpolicy.VariablecompensationequaledEUR0.091million(previousyearEUR0).
InhercapacityaschairwomanoftheSupervisoryBoard,Mrs.ChristaFuchsreceivedasumofEUR20,000for2010(previousyearEUR20,000),whileProf.Dr.-Ing.HansJ.RathreceivedEUR10,000(previousyearEUR10,000)andProf.HeinzStoewerEUR10,000(previousyearEUR10,000).Variablecom-pensationcomponentsweredispensedwith.Mrs.ChristaFuchswaspaidcompensationofEUR0.117million(previousyearEUR0.140million)forheradvisoryservicesformembersoftheOHBTechnologyGroupintheyearunderreview.Prof.HeinzStoewerreceivedcompensationtotalingEUR0intheyearunderreview(previousyearEUR10,500)andProf.Rathcom-pensationofEUR0(previousyearEUR5,800)fortheprovisionofconsultingservices.
Management Board and Supervisory Board shareholdingsAsofthebalancesheetdate,ChristaFuchs,chairwomanoftheSupervisoryBoard,held1,500,690shares,Prof.HeinzStoewer,amemberoftheSupervisoryBoard,1,000sharesandMarcoR.Fuchs,chairmanoftheManagementBoard,2,684,796shares.TheothermembersoftheManagementBoardProf.Dott.Ing.h.c.ManfredFuchsandUlrichSchulzheld3,763,064and54shares,respectively.OnDecember31,2010,VOLPAIABeteili-gungs-GmbHheld3,730,170shares.ChristaFuchsheld20%,MarcoR.Fuchs25%andProf.Dott.Ing.h.c.ManfredFuchs35%ofthecapitalofVOLPAIABeteiligungsgesellschaftasofthebalancesheetdate.
Directors’ dealingsIntheyearunderreview,membersoftheCompany’sManage-mentBoardandSupervisoryBoardaswellasrelatedlegalentitiesreportedthefollowingsecuritiestransactions:
OnJanuary18,2010,Dott.Ing.h.c.ManfredFuchstrans-ferredtoRomanaFuchsMayrhofer500,000sharesintheformofanon-remuneratedendowment.
corporate governance report
63
OHBTechnologyAG|2010
Corporate governance
Objectives regarding the composition of the Supervisory BoardOHBTechnologyAGseekstoimplementtheprincipleofdiver-sityinthecompositionoftheSupervisoryBoardandhasformu-latedthefollowingobjectivesinthisconnection.ThemembersoftheSupervisoryBoardasawhole(i.e.initsentiretyandnotnecessarilyeachindividualmemberoftheSupervisoryBoard)shouldmeetthefollowingrequirements:• knowledgeoftheaerospaceindustry,particularlyspace
technology• severalyearsofpracticalexperienceinindustry,scienceand
publicorganizations/agencies• extensiveknowledgegainedovermanyyearsinfinance,
accounting,bookkeepingandadministration.Inaddition,theprincipleofdiversityisimplementedbyensuringanappro-priatedegreeoffemalerepresentationontheSupervisoryBoard.Aswellasthis,acombinationofmembersfromscientific,technicalandcommercialbackgroundsissought.
Status of implementationAhighdegreeofdiversityintermsofgender,expertiseandinternationalexperiencehasbeenachievedwiththeappoint-mentofMrs.ChristaFuchs,thefounderofOHB-Systemandcommercialmanagingdirectorwithmanyyearsofexperience,tothepositionofchairwomanoftheSupervisoryBoardaswellasProfessorRath,whohasextensiveskillsasbothanentre-preneurandaspacetechnologyexpert,andProfessorStoewerasaninternationallyrenownedspacetechnologyexpertandformermanagerofESAandmanagingdirectoroftheGermanSpaceAgency.
DECLARATION OF CONFORMITY BY OHB TECHNOLOGY AG PURSUANT TO SECTION 161 OF THE STOCK CORPORATION ACT CONCERNING THE GERMAN CORPORATE GOVERNANCE CODE
OHBTechnologyAGwelcomestheGermanCorporateGover-nanceCodeandthefactthatitisembodiedinstatutorylaw.TheManagementBoardandtheSupervisoryBoardofOHBTechnologyAGdeclarethattheCompanyconformedtotherec-ommendationsoftheCorporateGovernanceCodeCommissionappointedbytheGermanFederalGovernmentandwillcontinuetodosointhefuture.ThisdeclarationofconformityisbasedontheMay2010versionoftheCorporateGovernanceCode.OHBTechnologyAGdeviatesfromtheprinciplesoftheGermanCorporateGovernanceCodeinonlyasmallnumberofpoints:
Age limits for the Management Board (5.1.2)OHBTechnologyAGdoesnotsetamaximumageformembersoftheManagementBoardasthiswouldlimittheavailabilityofManagementBoardmembersforappointmentbytheSupervi-soryBoard.
Formation of Supervisory Board committees (5.3)OHBTechnologyAG’sSupervisoryBoardhasnotformedanycommitteesonaccountofthesmallnumberofmembers(three).
Age limits for the Supervisory Board (5.4.1)TheCorporateGovernanceCoderecommendsdefiningmaximumagesforthemembersoftheSupervisoryBoard.TheSupervisoryBoardiselectedbytheshareholdersofOHBTechnology;accordingly,adefinedagelimitisnotadesirablefactorforselectionpurposes.
Inclusion of the deputy chairman of the Supervisory Board for compensation purposes (5.4.6) OHBTechnologyAGtakestheviewthatthisrecommendationmakeslittlesensewithaSupervisoryBoardcomprisingonlythreemembers.Accordingly,OHBTechnologyAG’sbylawsdonotprovideforanyparticularcompensationforthedeputychairmanoftheSupervisoryBoard.
Performance-tied compensation for members of the Supervisory Board (5.4.6)OHBTechnologytakestheviewthatsuchanarrangementisnotappropriatefortheCompanyasperformance-tiedcompensationisincompatiblewiththemonitoringdutiesimposedontheSupervisoryBoard(fromtheCompany’spointofview).Accord-ingly,OHBTechnologyAG’sbylawsdonotprovideforanyperformance-relatedcompensationformembersoftheSuper-visoryBoard.
ManagementBoardandSupervisoryBoardofOHBTechnologyAG
Bremen,November18,2010
2007 20052004
2006
2008
2003
20092010
64 Consolidated financial statements
Consolidated finanCial statementsConsolidated financial statements of OHB Technology AG for the year from January 1, 2010 until December 31, 2010
65 Consolidated income statement65 Statement of comprehensive income 66 Consolidated balance sheet67 Consolidated cash flow statement68 Consolidated statement of changes in assets70 Consolidated statement of changes in equity70 Notes to the consolidated financial statements91 Auditor’s certificate
65
OHB Technology AG | 2010
Consolidated financial statements
Note
1. Sales (1)
2. Changes in inventories of finished goods and work in progress (2)
3. Other own work capitalized
4. Other operating income (3)
5. Totalrevenues
6. Cost of materials (4)
7. Staff costs (5)
8. Depreciation and amortization (6)
9. Other operating expenses
10. Operatingprofit(EBIT)
11. Other interest and similar income (7)
12. Other financial expenses (7)
13. Currency translation gains
14. Net profit/loss from shares carried at equity (7)
15. Investment income (7)
16. Netfinancialincome/expense
17. Net gains from deconsolidation
18. Earningsbeforetaxes
19. Income taxes (8)
20. Consolidatednetincomefortheyear
21. Minority interests (9)
22. Consolidatednetincomefortheyearafterminorityinterests
23. Consolidated profit carried forward
24. Additions to share premium
25. Consolidatedprofit
26. Number of shares
27. Earnings per share (basic, EUR)
28. Earnings per share (diluted, EUR)
Note
Consolidatednetincomefortheyear
Exchange difference on translating foreign operations (21)
Net gains/losses from the measurement of financial assets recorded under equity (21)
Cash flow hedges (21)
Recycling
Gains arising during the year
Othercomprehensiveincomeaftertax
Comprehensiveincome
Of which attributable to
equity holders of OHB Technology AG
other equity holders
Consolidatedincomestatement inEUR000s
Statementofcomprehensiveincome inEUR000s
2010
425,448
7,450
7,156
13,269
453,323
275,616
114,256
10,958
29,763
22,730
746
6,823
–61
–388
–820
–7,346
0
15,384
5,176
10,208
–566
9,642
55,027
0
64,669
17,401,142
0.55
0.55
2010
10,208
16
143
–58
119
220
10,428
9,862
566
2009
287,164
18,346
5,092
11,216
321,818
167,927
92,995
10,888
29,237
20,771
545
6,378
75
–515
–125
–6,398
3,666
18,039
1,321
16,718
–1,858
14,860
42,689
0
57,549
15,496,142
0.96
0.96
2009
16,718
0
717
0
58
775
17,493
15,618
1,875
66
OHB Technology AG | 2010
Consolidated financial statements
Note
Goodwill (10)
Other intangible assets (10)
Property, plant and equipment (11)
Shares carried at equity (12)
Other financial assets (13)
Non-currentassets
Other non-current receivables and assets (14)
Securities (16)
Deferred taxes
Othernon-currentassets
Property,plantandequipment/non-currentassets
Inventories (15)
Trade receivables (14)
Other tax receivables (14)
Other non-financial assets (1)
Securities (16)
Cash and cash equivalents (17)
Currentassets
Totalassets
Note
Subscribed capital (18)
Additional paid-in capital (19)
Retained earnings (20)
Other comprehensive income (21)
Treasury stock (22)
Consolidated profit
Shareholders‘equityexcludingminorityinterests
Minority interests (23)
Shareholders‘equity
Provisions for pensions and similar obligations (24)
Other non-current provisions (25)
Non-current financial liabilities (26)
Non-current advance payments received on orders (27)
Deferred tax liabilities
Non-currentliabilitiesandprovisions
Current provisions (25)
Current financial liabilities (28)
Trade payables (29)
Current advance payments received on orders (30)
Tax liabilities
Other current liabilities (31)
Currentliabilities
Totalequityandliabilities
Assets inEUR000s
Shareholders‘equityandliabilities inEUR000s
Consolidatedbalancesheet
December31,2010
7,687
28,503
53,580
1,895
15,354
107,019
3,411
5,259
4,369
13,039
120,058
103,939
140,087
8,648
6,125
4,268
83,271
346,338
466,396
December31,2010
17,468
15,094
520
-3,018
-632
64,669
94,101
11,069
105,170
74,292
2,442
42,798
61,818
9,845
191,195
16,326
4,396
67,429
70,662
4,901
6,317
170,031
466,396
December31,2009
7,687
25,967
53,785
2,284
10,039
99,762
4,755
5,171
4,608
14,534
114,296
102,687
132,896
6,997
8,195
20,942
55,892
327,609
441,905
December31,2009
17,468
15,094
520
–3,238
–632
57,549
86,761
11,364
98,125
71,568
2,828
14,379
57,933
9,535
156,243
17,920
29,583
56,966
69,186
7,316
6,566
187,537
441,905
Notes on the cash flow statement on page 88
67
OHB Technology AG | 2010
Consolidated financial statements
Operating EBIT
Non-cash income from first-time consolidation
Income taxes paid
Depreciation/amortization
Changes in pension provisions
Grosscashflow
Increase(–)/decrease (+) in own work capitalized
Increase(–)/decrease (+) in inventories
Increase(–)/decrease (+) in receivables and other assets
Increase(+)/decrease (–) in liabilities and current provisions
Increase(+)/decrease (–) in advance payments received
Profit (–)/loss (+) from the disposal of non-current assets
Cashinflow/outflowfromoperatingactivites
Payments made for investments in non-current assets
Payments received/made from the acquisition of consolidated companies
Payments received from the disposal of non-current assets
Payments received from the sale of consolidated subsidiaries
Interest and other financial income
Payments made in connection with items not allocated to operating or financing activities
Cashinflow/outflowfrominvestingactivities
Dividend payout
Equity issue
Payments made for other financial instruments
Payments made for the settlement of financial liabilities
Payments received from raising borrowings
Acquisition of treasury stock
Minority interests
Interest and other financial expenses
Cashinflow/outflowfromfinancingactivites
Cash changes to cash and cash equivalents
Consolidation-related changes to cash and cash equivalents
Currency-related changes to cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cashandcashequivalentsattheendoftheperiod
Cashandcashequivalentsattheendoftheperiodandcurrentfinancialinstruments
January1
Changes in cash and cash equivalents including securities and current financial instruments
December31
Consolidatedcashflowstatement inEUR000s
2010
22,730
–4,338
–8,075
10,959
1,634
22,910
–6,912
2,668
21,768
–73
1,282
480
42,123
–12,214
5,451
16
0
659
10
–6,078
–4,350
0
–4,192
–29,574
32,802
0
–1,973
–7,028
–14,315
21,730
1,517
–60
55,892
79,079
82,005
10,794
92,798
2009
20,771
0
–4,165
10,888
1,708
29,202
–4,877
–25,091
–7,670
3,761
37,171
100
32,596
–9,806
–4,571
3,790
4,995
419
–287
–5,460
–3,715
–401
0
–8,000
610
0
0
–6,378
–17,884
9,252
0
75
46,565
55,892
67,077
14,928
82,005
68
OHB Technology AG | 2010
Consolidated financial statements
Productionandaquisitioncosts
Productionandaquisitioncosts
For the year from January 1 until December 31, 2010
I. Goodwill
II. Intangible assets
Concessions and industrial property rights
Software acquired
Software produced
III. Property, plant and equipment
Operating and business equipment
Property and plant
IV. Financial assets
Investments in affiliated companies
Investments in associated companies
Other investments
Total
For the year from January 1 until December 31, 2009
I. Goodwill
II. Intangible assets
Concessions and industrial property rights
Software acquired
Software produced
III. Property, plant and equipment
Operating and business equipment
Property and plant
IV. Financial assets
Investments in affiliated companies
Investments in associated companies
Other investments
Total
Balance on January 1,
2010
EUR000s
8,957
1,980
9,459
41,833
79,943
42,829
63
2,284
28,630
215,978
Revaluations
EUR000s
0
0
0
0
0
0
0
0
143
143
Additions from first-time
consolidation
EUR000s
0
0
7
0
449
286
0
0
–296
446
Additions
EUR000s
0
59
640
6,912
4,915
57
0
0
6,543
19,126
Disposals
EUR000s
0
0
373
0
3,510
0
0
389
1,075
5,347
Reclassi- fications
EUR000s
0
0
51
66
–117
0
0
0
0
0
Balance on December 31,
2010
EUR000s
8,957
2,039
9,784
48,811
81,680
43,172
63
1,895
33,945
230,346
Balance on January 1,
2009
EUR000s
9,007
1,955
9,546
32,433
67,404
39,440
63
2,798
26,906
189,552
Revaluations
EUR000s
0
0
0
0
0
0
0
0
718
718
Additions from first-time
consolidation
EUR000s
0
25
64
8,434
12,417
0
0
0
1,200
22,140
Additions
EUR000s
0
0
992
4,877
5,680
3,012
0
0
120
14,681
Disposals
EUR000s
50
0
1,136
3,911
5,188
0
0
514
314
11,113
Reclassi- fications
EUR000s
0
0
–7
0
–370
377
0
0
0
0
Balance on December 31,
2009
EUR000s
8,957
1,980
9,459
41,833
79,943
42,829
63
2,284
28,630
215,978
Consolidatedstatementofchangesinassets
Consolidatedstatementofchangesinassets
69
OHB Technology AG | 2010
Consolidated financial statements
Bookvalues
Bookvalues
Accumulateddepreciation
Accumulateddepreciation
Balance on January 1,
2010
EUR000s
1,270
1,685
7,649
17,971
54,735
14,252
0
0
18,654
116,216
Balance on December 31,
2010
EUR000s
7,687
188
1,720
26,595
26,734
26,846
63
1,895
15,291
107,019
Additions from first-time
consolidation
EUR000s
0
0
0
0
0
0
0
0
0
0
Additions
EUR000s
0
166
785
4,245
3,688
2,074
0
0
0
10,958
Disposals
EUR000s
0
0
370
0
3,477
0
0
0
0
3,847
Balance on December 31,
2010
EUR000s
1,270
1,851
8,064
22,216
54,946
16,326
0
0
18,654
123,327
Balance on December 31,
2009
EUR000s
7,687
295
1,810
23,862
25,208
28,577
63
2,284
9,976
99,762
Balance on January 1,
2009
EUR000s
844
1,263
8,007
14,716
54,774
12,264
0
0
18,654
110,522
Balance on December 31,
2009
EUR000s
7,687
295
1,810
23,862
25,208
28,577
63
2,284
9,976
99,762
Additions from first-time
consolidation
EUR000s
0
0
0
0
0
0
0
0
0
0
Additions
EUR000s
426
422
778
3,577
3,697
1,988
0
0
10,888
Disposals
EUR000s
0
0
1,136
322
3,736
0
0
0
0
5,194
Balance on December 31,
2009
EUR000s
1,270
1,685
7,649
17,971
54,735
14,252
0
0
18,654
116,216
Balance on December 31,
2008
EUR000s
8,163
692
1,539
17,717
12,630
27,176
63
2,798
8,252
79,030
70
OHB Technology AG | 2010
Consolidated financial statements
NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS
GeneralinformationThe Company has its head office at Karl-Ferdinand-Braun-Str. 8 in 28359 Bremen, Germany. OHB Technology AG exercises the function of an active holding company which manages the sub-sidiaries within the OHB Group. The Group is primarily engaged in the production and distribution of products and projects as well as the provision of high-technology services particularly in the areas of space and aeronautic technology, telematics and satellite services.
AccountingprinciplesandmethodsIn accordance with Regulation (EC) 1606/2002 issued by the European Parliament and the Council on July 19, 2002, OHB Technology AG is required to prepare consolidated financial statements in accordance with international accounting stan-dards (IFRS/IAS). The consolidated financial statements have been compiled in accordance with the International Financial Reporting Standards (IFRS/IAS) applicable in the EU in the light
of the interpretations of the International Financial Reporting Interpretations Committee (IFRIC/SIC) as well as the supple-mentary provisions contained in Section 315 a of the German Commercial Code. The consolidated financial statements have been prepared in accordance with the going-concern principle. The Group manages its capital with the aim of ensuring that all Group members are able to operate in accordance with the going-concern principle and with the aim of maximizing income from its investments by optimizing its equity and debt capital. The overall strategy pursued by the Group is unchanged over 2009. The Group is not subject to any externally imposed capital requirements. In addition to the consolidated balance sheet, consolidated income statement and the consolidated statement of comprehensive income, the consolidated annual financial statements include a consolidated cash flow statement, a state-ment of changes in consolidated equity and a statement of changes in consolidated assets. The segment report is included in the notes. In addition, the notes contain the declaration required by Section 285 No. 16 of the German Commercial Code confirming that the disclosures stipulated by Section 161 of the
Consolidatedstatementofchangesinequity
inEUR000s
Note
December31,2008
Dividend payment (EUR 0.25 per share)
Equity issue
Comprehensive income
Cost of equity issue
Changes to consolidated companies
Other changes
December31,2009
Dividend payment (EUR 0.25 per share)
Comprehensive income
Changes to consolidated companies
Other changes
December31,2010
Other com-prehensive
income
(21)
–4,014
0
0
776
0
0
0
–3,238
0
220
0
0
–3,018
Subscribed capital
(18)
14,928
0
2,540
0
0
0
0
17,468
0
0
0
0
17,468
Additional paid-in capital
(19)
15,148
0
0
0
–401
347
0
15,094
0
0
0
0
15,094
Retained earnings
(20)
520
0
0
0
0
0
0
520
0
0
0
0
520
Consolida-ted profit
46,404
–3,715
0
14,860
0
0
0
57,549
–4,350
9,642
1,828
0
64,669
Treasury stock
(22)
–632
0
0
0
0
0
0
–632
0
0
0
0
-632
Share-holders‘
equity exclu-ding minori-ty interests
72,354
–3,715
2,540
15,636
–401
347
0
86,761
–4,350
9,862
1,828
0
94,101
Minority interests
(23)
9,008
0
0
1,858
0
0
498
11,364
0
566
1,112
–1,973
11,069
Share - holders‘ equity
81,362
–3,715
2,540
17,494
–401
347
498
98,125
–4,350
10,428
2,940
–1,973
105,170
71
OHB Technology AG | 2010
Consolidated financial statements
German Stock Corporation Act have been duly made. The income statement has been compiled using the total-cost method.
The reporting currency is the euro. Unless otherwise stated, all amounts are reported in millions of euros (EUR mil-lion). It should be noted that the use of rounded figures and per-centages may result in differences due to commercial rounding.
ConsolidationmethodsThe purchase method of accounting is generally used to account for the acquisition of subsidiaries by the Group. All material subsidiaries under the legal or constructive control of OHB Technology AG have been consolidated.
Any remaining positive difference between the cost of acquiring the shareholdings and the net assets calculated at their fair values is recognized as goodwill under IAS 3.32, while negative goodwill is reported through profit and loss.
Sales, expenses, income as well as receivables and liabilities between consolidated companies are netted and any inter-Group profits eliminated.
The carrying amounts of companies consolidated at equity are adjusted to allow for the proportionate profit/loss attribut-able to such companies.
In the case of business combinations based on a transaction under common control, consolidation is performed using the pooling of interests method.
AcquiredbusinessesOHB Technology AG acquired all of the capital of space technol-ogy company Thales Alenia Space Antwerp N.V., Antwerp, Belgium. The acquisition was executed on July 19, 2010 and the company consolidated in full from August 1, 2010. Preliminary consolidation is temporary. Renamed Antwerp Space NV on October 28, 2010, this company specializes in developing and producing equipment for ground stations, particularly for tele-communications and earth observation applications. In 2009 the company with its 42 employee generated sales of around EUR 10 million. The previous owner was Thales Alenia Space France SAS, Toulouse, France. The purchase price paid for the company stood EUR 1.
Antwerp Space was consolidated for the first time effective August 1, 2010 on the basis of the interim financial statements as of that date. First-time consolidation produced negative goodwill of EUR 4.338 million, which was taken to profit and loss in accordance with IFRS 3.34 et seq. The main assets acquired were property, plant and equipment (EUR 0.219 million), receivables (EUR 1.635 million), other assets (EUR 1.232 million) and cash and cash equivalents (EUR 5.451 mil-lion). Liabilities primarily comprised provisions for pension-like obligations (EUR 1.083 million), other provisions (EUR 0.639 million), trade payables (EUR 0.660 million), prepayments received (EUR 0.790 million) and other liabilities (EUR 1.121 mil-
lion). The company’s assets and liabilities were measured at their fair value. Since being consolidated within the OHB Group, Antwerp Space has generated sales of EUR 2.526 million and net profit of EUR 0.140 million.
ConsolidatedcompaniesOHB Technology AG’s consolidated financial statements include OHB Technology AG, twelve domestic and six foreign subsidiaries and a further foreign associate. The table entitled “Consolidated companies” sets out the subsidiaries and associates together with the relative size of the share held. In addition, shares were held in other companies (see table entitled “Further invest-ments and financial assets”, page 73). In accordance with the principle of materiality pursuant to the IFRS/IAS framework, the companies stated in the table, which are fundamentally subject to compulsory consolidation (OHB share › 20%), are not included in the consolidation perimeter. The share holdings shown in the tables entitled “Consolidated companies” and “Further investments and financial assets” correspond to the voting rights held. As of January 1, 2010, MT Aerospace Guyane S.A.S., Kourou (French Guiana), and MT Aerospace Satellite Products Ltd., Wolverhampton (United Kingdom) were consoli-dated for the first time due to a revised assessment of their materiality. Both companies are wholly owned subsidiaries of MT Aerospace AG. First-time consolidation did not give rise to any goodwill. The companies were consolidated in accordance with IFRS 1.C4 (j) and their profit prior to the date of first-time consolidation allocated to profit carried forward. Unappropri-ated surplus rose by EUR 1.828 million. Non-controlling inter-ests rose by EUR 1.112 million. In the year under review, MT Aerospace Guyane and MT Aerospace Satellite Products gener-ated sales of EUR 12.249 million, including internal sales of EUR 7.105 million from business with MT Aerospace AG; net profit in the year under review came to EUR 2.048 million.
CurrencytranslationMost outgoing invoices are denominated in euro. Incoming and outgoing invoices denominated in a foreign currency are converted and recognized on the balance-sheet date. Foreign-currency bank balances were translated at the end-of-year exchange rate. The annual financial statements of the indepen-dent non-domestic subsidiary MT Aerospace Satellite Products were prepared in its domestic currency (GBP) and translated using the functional currency principle in accordance with IAS 21. The foreign-currency difference arising from translation of the equity capital is recorded within equity from unrealized gains/losses.
72
OHB Technology AG | 2010
Consolidated financial statements
SummaryofsignificantaccountingpoliciesThe International Accounting Standards Board (IASB) and IFRIC have revised existing standards and interpretations and adopted new ones which are subject to compulsory application as of the 2010 fiscal year:> IFRS1 “First Time Adoption of IFRS” The revised version of
IFRS 1 is compulsory for companies preparing IFRS finan-cial statements for the first time as of July 1, 2009. The revi-sions refer solely to the formal structure of IFRS 1. The revised version is not relevant for the OHB Group.
> AmendmentstoIFRS1 “Additional exemptions of first time adopters”. The amendments provide guidance on retroactive application to certain matters. They are not relevant for the OHB Group.
> AmendmentstoIFRS2 “Group cash-settled share-based payment transactions”. The amendments clarify the situa-tion with respect to share-based payments with cash settle-ment within the Group. They are not relevant for the OHB Group.
> RevisedIFRS3 “Business combinations” and Amendments to IAS 27 “Consolidated and separate financial statements”. Among other things, the amendments extend the applicability of the provisions to the business combinations of mutual entities and business combinations in the absence of valu-able consideration. The costs arising in connection with a
business combination for the issue of debt or equity instru-ments must now be recorded in accordance with IAS 39 and IAS 32; all other business combination expenses are taken to profit and loss. In addition, the option to use the full good-will method is introduced. The amendments are of relevance for the OHB Group and have been duly taken into account in these financial statements.
> AmendmentstoIAS39“Financial instruments: recognition and measurement – eligible hedged items”. These amend-ments provide additional guidance on the designation of hedges. They are not relevant for the OHB Group.
> ImprovementstoIFRS (Annual Improvements Project). The amendments primarily entail adjustments to the wording of individual IFRSs. Possible adjustments have been examined and implemented by the OHB Group.
> IFRIC12“Services concession arrangements”. This inter-pretation provides guidance on accounting for arrangements whereby a government or other body grants contracts for the supply of public services to private operators. These rules are not applicable to the OHB Group.
> IFRIC15 “Agreements for the construction of real estate”. IFRIC 15 harmonizes the accounting of income from the sale of residential units. These rules are not applicable to the OHB Group.
Consolidatedcompanies
Nameofcompany Shareheld(%) Consolidation
OHB-System AG. Bremen (Germany) 100.0 Fully consolidated
STS Systemtechnik Schwerin GmbH. Schwerin (Germany) 100.0 Fully consolidated
KT Beteiligungs GmbH & Co. KG. Bremen (Germany) 100.0 Fully consolidated
Kayser-Threde GmbH. Munich (Germany) ¹ 100.0 Fully consolidated
Carlo Gavazzi Space S.p.A. (Italy) 100.0 Fully consolidated
Antwerp Space N.V.. Antwerpen (Belgium) 100.0 Fully consolidated
LUXSPACE Sàrl. Betzdorf (Luxembourg) 100.0 Fully consolidated
ELTA S.A.. Toulouse (France) 34.0 At Equity
MT Aerospace Holding GmbH. Bremen (Germany) 70.0 Fully consolidated
MT Aerospace AG. Augsburg (Germany) ² 100.0 Fully consolidated
MT Aerospace Grundstücks GmbH & Co. KG. München (Germany) ³ 94.9 Fully consolidated
MT Mechatronics GmbH. Mainz (Germany) ³ 100.0 Fully consolidated
MT Aerospace Satellite Products Ltd.. Wolverhampton (UK) ³ 100.0 Fully consolidated
MT Aerospace Guyane S.A.S.. Kourou (French Guiana) ³ 100.0 Fully consolidated
OHB Teledata GmbH. Bremen (Germany) 100.0 Fully consolidated
megatel Informations- und Kommunikationssysteme GmbH. Bremen (Germany) 74.9 Fully consolidated
Timtec Teldatrans GmbH. Bremen (Germany) 100.0 Fully consolidated
Telematic Solutions S.p.A.. Mailand (Italy) 100.0 Fully consolidated
ORBCOMM Deutschland AG. Bremen (Germany) 100.0 Fully consolidated
¹ held by KT Beteiligungs GmbH & Co. KG² held by MT Aerospace Holding GmbH³ held by MT Aerospace AG
73
OHB Technology AG | 2010
Consolidated financial statements
> IFRIC16 “Hedges of a net investment in a foreign operation”. This interpretation provides guidance on hedging net invest-ments in foreign businesses. These rules are not applicable to the OHB Group.
> IFRIC17 “Distributions of non-cash assets to owners”. IFRIC 17 provides guidance on how non-cash assets paid to owners as dividends are to be treated. These rules are not applicable to the OHB Group.
> IFRIC18“Transfers of Assets from Customer”. IFRIC 18 provides additional guidance on accounting for the transfer of assets by customers. These rules are not applicable to the OHB Group.
Furtherinvestmentsandfinancialassets
Nameofcompany Shareheld(%) ShareincapitalEUR000s
RST Radar Systemtechnik GmbH, Salem (Germany)* 24.0 88
OHB France S.A., Paris (France)* 100.0 37
OHB-ElectroOPtics GmbH, Bremen (Germany)* 50.0 13
beos GmbH, Bremen (Germany) 12.0 60
ATB GmbH, Bremen (Germany) 5.0 26
OHB Marine Technologies GmbH, Bremen (Germany)* 100.0 25
COSMOS International Satellitestart GmbH, Bremen (Germany)* 49.9 13
Cosmos Space Systems AG, Bremen (Germany)* 66.6 40
Telemondo International GmbH 100.0 26
KT Verwaltungsgesellschaft mbH, Bremen (Germany)* 100.0 25
VRS Verkehr Raumfahrt Systemtechnik GmbH, Leipzig (Germany)* 60.0 31
RapidEye AG, München (Germany) 2.9 17
ENERGIA Deutschland GmbH, München (Germany)* 40.0 10
ORC Orbital Recovery Corporation, Grand Cayman (KY) 2.9 95
OSSL Orbital Satellite Services Ltd., London (UK) 14.6 119
Antares S.c.a.r.l., San Giorgio Del Sannio (Italy)* 57.0 91
Arianespace Participation, Evry (France) 8.3 8,328
MT Dezentrale Energiesysteme GmbH, München (Germany)* 100.0 1,022
MT Mecatronica Limitada, Santiago de Chile (Chile)* 99.0 30
ORBCOMM Inc., Dulles (USA) 5.3 4,204
* not consolidated in the year under review for materiality reasons
Of the investments in associates and financial assets stated, the following are material: MT Dezentrale Energiesysteme GmbH with equity as of December 31, 2010 of EUR 1.023 million and net profit for 2010 of EUR 0, VRS Verkehr Raumfahrt Systemtechnik GmbH with equity as of December 31, 2009 of EUR 0.206 million and a net loss for the year of 2009 of EUR 0.029 million and RST Radar Systemtechnik GmbH with equity as of December 31, 2009 of EUR 0.432 million and net profit for 2009 of EUR 0.017 million.
AmendmentstoIFRS1 „Limited Exemption from Comparative IFRS 7 Diclosures for First Time Adopters “
RevisedIAS24 „Related Party Disclosures“
AmendmenttoIAS32 „Classification of Rights Issues“
ImprovementstoIFRS(issuedMay2010)
AmendmenttoIFRIC14„Prepayments of a Minimum Funding Requirement“
IFRIC19 „Extinguishing Financial Liabilities with Equity Instruments“
To be applied in accounting periods beginning on or after June 30, 2010
To be applied in accounting periods beginning on or after December 31, 2010
To be applied in accounting periods beginning on or after February 1, 2010
To be applied in accounting periods beginning on or after July 1, 2010
To be applied in accounting periods beginning on or after December 1, 2010
To be applied in accounting periods beginning on or after June 30, 2010
74
OHB Technology AG | 2010
Consolidated financial statements
First-time application of the aforementioned standards did not have any material effect on OHB Technology AG’s consolidated financial statements.
The IASB has issued the above standards, interpretations and revisions to existing standards which are not yet compul-sory and which OHB Technology AG did not adopt on a voluntary early basis.
On the basis of a preliminary assessment, the application of the above-mentioned standards and interpretations will not exert any material influence on the presentation of the financial statements. The Management Board of OHB Technology AG has decided not to apply the aforementioned standards before the accounting periods in which application becomes mandatory.
ChangesinaccountingpolicyThere have been no changes in the recognition or measurement principles compared with the previous year.
RecognitionofrevenuesRevenues and other operating income are recognized on the date on which the services or goods are provided or risk passes to the customer. The percentage-of-completion method pro-vided for in IAS 11 was applied allowing for reasonable discounts on the basis of a true and fair view to allow for unexpected future risks to the extent that it was possible to calculate the partial profit with adequate precision on the basis of the percentage of completion. For this purpose, the degree of completion is determined on the basis of the contract costs which have arisen as of the balance sheet date relative to the expected total contract costs. Long-term projects in progress on the balance-sheet date (remaining durations of between one and ten years) are recognized as assets on the basis of produc-tion costs plus refundable administrative overhead costs provided that a partial profit can be estimated with a reason-able degree of reliability. Partial profits are recognized in other projects using generally accepted principles.
BorrowingcostsBorrowing costs must be included in the cost of acquisition or construction in accordance with IAS 23.8. No borrowing costs arose in connection with contracts in the year under review.
OwnworkcapitalizedDevelopment expenditure is recognized as an asset pursuant to IAS 38.57 if a newly developed product or process can be clearly delineated, is technically feasible and is intended either for the Company’s own use or for sale. A further condition is that it must be sufficiently likely for the development expendi-ture to be recouped from future cash flows. Such expenditure is recognized on the basis of the production costs incurred, pri-marily development hours multiplied by the applicable hourly rate.
Netfinanceincome/expenseNet financial income/expense includes the share of profits of associates accounted for at equity as well as other investments including profit from the sale of financial assets, adjustments to the value of financial assets, other interest expenditure on lia-bilities, dividends, interest income on receivables and currency gains and losses.
Interest income is recorded in the income statement in accordance with the effective interest method. Dividends are reported in the income statement upon a resolution to distrib-ute a dividend being passed. Interest expenditure on pension provisions are also reported as other interest expenditure.
IntangibleassetsAs of each balance sheet date, OHB Technology reviews the carrying amounts of its intangible assets to identify any evi-dence of impairment.
In this case, the recoverable amount of the asset in question is calculated to determine the amount of any impairment loss. The recoverable amount is defined as the fair value less possible costs of sale or the value in use, whichever is the greater.
Intangible assets acquired from third parties primarily comprise software programs, order books acquired and licenses. These are written down on a straight-line basis over a period of between one and six years. Internally generated assets are written down on a straight-line basis over the expected useful life of four to eight years.
For the purpose of identifying any impairment, goodwill must be allocated to each cash-generating unit within the Group expected to derive any benefit from the synergistic effects of the business combination. Cash-generating units to which part of the goodwill is allocated are subject to annual impairment testing. If there is any evidence of impairment of a cash-generating unit, it is tested more frequently for impair-ment. If the recoverable amount of a cash-generating unit is less than its carrying amount, the impairment loss is initially assigned to the carrying amount of all goodwill allocated to the unit and then on a proportionate basis to the other assets on the basis of the carrying amount of each asset within the unit.
Property,plantandequipmentAs of each balance sheet date, OHB Technology reviews the carrying amounts of its property, plant and equipment to iden-tify any evidence of impairment. In this case, the recoverable amount of the asset in question is calculated to determine the amount of any impairment loss. The recoverable amount is defined as the fair value less possible costs of sale or the value in use, whichever is the greater.
75
OHB Technology AG | 2010
Consolidated financial statements
Assets classed as property, plant and equipment are carried at cost less scheduled straight-line depreciation over their expected useful lives. Subsequent expenditure on assets which does not increase their value or materially extend their useful lives is expensed. Material additions and improvements are recognized as assets. Disposals are reflected in historical acquisition costs as well as accumulative depreciation. Profit and loss from the disposal of assets are recorded within oper-ating income/expenses. Property, plant and equipment are written down over periods of between three and 33 years.
Property, plant and equipment held under finance leases are reported at the lower of the fair value or the present value of the minimum lease payments and written down over the shorter of their expected useful lives or the term of the lease.
FinancialassetsSharesinassociatesShares in associates are reported at cost net of the share in their profit/loss for the year.
OtherfinancialassetsOther financial assets are reported at cost and measured in accordance with their fair value. This item comprises the investments in ORBCOMM Inc., details of whose stock market prices were available as of the balance sheet date. Adjustments resulting from fair value accounting are recognized under equity. The deferred tax arising from this is reported under deferred tax liabilities. A further material item is the share held in Arianespace Participation, Evry (France). On December 15, 2010, Arianespace issued new share capital; in accordance with its share in Arianespace, MT Aerospace AG subscribed to addi-tional capital of EUR 6.536 million. The total carrying amount of this share now stands at EUR 8.328 million.
InventoriesInventories are recognized at historical cost or the lower net recoverable value prevailing on the balance sheet date.
ReceivablesReceivables and other assets are reported at their settlement amount. If in individual cases there are justified doubts as to whether receivables can be retrieved, they are written down or recorded at the lower recoverable value.
In the case of consolidated companies with construction contracts as defined in IAS 11 on their books, the percentage-of-completion method is applied allowing for reasonable dis-counts on the basis of a true and fair view to take account of unexpected future risks as far as it is possible to calculate the partial profit with adequate precision on the basis of the per-
centage of completion. Construction projects in progress on the balance sheet date (remaining durations of between one and eight years) are recognized as assets on the basis of production costs plus prorated refundable administrative overhead costs provided that a partial profit can be estimated with a reasonable degree of reliability. Projects for which partial profits have been recognized are reported under revenues pursuant to IAS 11.22. The corresponding contract costs are recognized as cost of materials/services in the fiscal year in question.
Securities/financialinstrumentsThe fair values are determined on the basis of the stock market prices as of the balance sheet date. Non-current securities are measured in accordance with IAS 39 and IFRS 7 (Reclassifica-tion of Financial Assets).
DeferredincometaxesPursuant to IAS 12, temporary differences between the carry-ing amount of assets or liabilities on the balance sheet and their tax base in accordance with IFRS/IAS give rise to deferred income taxes. The OHB Group applies a uniform domestic tax rate of 32% for calculating deferred taxes.
EquityIAS 32 (Financial Instruments: Disclosure and Presentation) stipulates that equity must not include any contractual obliga-tion to deliver cash or any other financial asset to another entity. OHB Technology AG defines equity as subscribed capital, the share premium, unrealized gains and losses recognized within equity, retained earnings and accrued profit brought forward.
ProvisionsforpensionsandsimilarobligationsObligations under defined-benefit plans are calculated using the projected unit credit method in accordance with IAS 19 (Employee Benefits). The expected benefits are deferred over the entire period of service of the employees.
76
OHB Technology AG | 2010
Consolidated financial statements
OtherprovisionsOther provisions have been reliably assessed for matters resulting in an outflow of enterprise resources to settle present obligations in accordance with IAS 37. Estimates are primarily based on detailed calculations.
LiabilitiesLiabilities comprise financial liabilities, trade payables and other liabilities. Financial liabilities are reported at amortized cost. Any differences between historical cost and the settle-ment amount are reported in accordance with the effective interest method. Liabilities are recognized at their nominal or settlement amount.
EstimatesProper and full preparation of the consolidated financial state-ments requires to some degree the use of estimates and assumptions, which affect the assets and liabilities reported, the disclosure of contingent liabilities and receivables on the balance sheet and the income and expenses recognized. The actual amounts may vary from these estimates and assump-tions in individual cases. Any adjustments are taken to the income statement upon further knowledge becoming available. The value of goodwill is determined in an annual impairment test. This test involves estimates of future cash inflows. Future changes in the general economic environment and the situation of the sector or Company may result in a reduction in net cash inflows and, hence, impair the value of the goodwill. Technical progress, deterioration in the market situation or damage may necessitate non-scheduled depreciation of property, plant and equipment. Pension provisions are calculated on the basis of a number of premises and assumed trends, the application of biometric probabilities as well as generally accepted approxi-mation methods to determine pension obligations. Actual pay-ment obligations arising over time may vary from these. Tax provisions and impairment testing of deferred tax assets are also based on estimates. In determining the value of deferred tax assets, uncertainty may arise with respect to the interpre-tation of complex tax legislation as well as the amount and timing of future taxable income. In view of the current conditions in the economy and the financial markets, it is not possible at this stage to make any reliable assumptions on the range of possible adjustments which may need to be made to the estimates in 2011.
NOTESONTHECONSOLIDATEDINCOMESTATEMENT
(1)SalesRevenues from construction contracts as defined in IAS 11 came to EUR 301.463 million in 2010 (previous year EUR 174.041 million). The related contract costs stood at EUR 286.764 mil-lion (previous year EUR 155.933 million). The resultant earnings before interest and taxes (EBIT) for 2010 equaled EUR 14.699 million (previous year EUR 18.108 million).
Sales break down by business unit as follows:
inEUR000s 2010 2009
Space Systems + Security 206,757 88,727
Payloads + Science 42,657 61,959
Space Transportation International 53,227 17,696
Space Transportation + Aerospace Structures 133,160 123,176
Telematics + Satellite Operations 14,330 17,067
Consolidation –24,683 –21,461
Total 425,448 287,164
AdditionaldisclosuresonPOCmeasurement(IAS11)
inEUR000sNet
assetsNet
liabilities Total
Expenses + profit 483,905 243,060 726,965
Prepayments received 399,459 301,558 701,017
Amountshownonbalancesheet
84,446
–58,498
23,948
(2)ChangesininventoriesoffinishedgoodsandworkinprogressThe increase in inventories of finished goods and work in progress is due primarily to the Payloads + Science business unit (EUR 8.2 million / previous year EUR 20.2 million). All told, inventories rose by EUR 7.5 million (previous year EUR 18.3 mil-lion). There was a reduction of EUR 1.3 million in inventories in the Space Transportation + Aerospace Structures segment.
(3)OtheroperatingincomeThis includes income from the reversal of provisions of EUR 3.241 million (previous year EUR 2.131 million) as well as income from grants of EUR 4.016 million (previous year EUR 2.292 million). The income from grants is recognized upon the occurrence of the related costs. At the moment, there is no evidence indicating that the conditions imposed by the providers of grants cannot be satisfied. The negative goodwill of EUR 4.338 million arising from the first-time consolidation of Antwerp Space N.V. was also recorded through profit and loss.
77
OHB Technology AG | 2010
Consolidated financial statements
(4)Costofmaterials
inEUR000s 2010 2009
Cost of raw materials and goods purchased 207,984 117,457
Expenditure on services purchased 67,632 50,470
Total 275,616 167,927
(5)Staffcosts
inEUR000s 2010 2009
Wages and salaries 94,421 78,464
Social security charges and expenditure on old age pensions and support 19,835 14,531
Total 114,256 92,995
Pensions and pension provisions came to EUR 3.973 million (previous year EUR 3.367 million).
(6)DepreciationandamortizationNo non-scheduled depreciation/amortization was required in the year under review. Further details on depreciation/amorti-zation are set out in the consolidated statement of changes in assets.
(7)Netfinanceincome/expenseInterestThe interest income of EUR 0.746 million (previous year EUR 0.545 million) primarily comprises interest earned on the investment of cash in fixed-term deposits.
The other finance expenditure of EUR 6.823 million (previ-ous year EUR 6.378 million) included in this figure chiefly relates to interest expenditure on pension provisions of EUR 3.789 million (previous year EUR 3.864 million) and interest on debt capital of EUR 2.317 million at the level of one subsidiary.
Shareofprofit/lossofassociatesThe share of profit/loss of associates comprises the share in the loss of EUR 0.388 million sustained by ELTA S.A. (previous year profit of EUR 0.515 million), which is consolidated at equity.
(8)IncometaxesActual income tax of EUR 3.558 million (previous year EUR 3.171 million) arose with respect to the consolidated German compa-nies; income tax of EUR 0.480 million (previous year EUR 1.021 million) arose outside Germany. Domestic income taxes in 2010 were calculated in detail using different tax rates. Deferred tax assets are recognized pursuant to IAS 12. The domestic deferred income tax is calculated on the basis of tax rates of 32%. The weighting of the individual tax rates results in an average tax rate of 32%.
Reconciliationoftaxexpense
inEUR000s 2010 2009
Taxes at a tax rate of 32.00% 4,963 5,778
Reductions to tax expenses as a result of partially tax-exempt income –1,402 –3,330
Tax losses utilized 77 –237
Non-deductible operating expenses 1,571 1,239
Other tax effects 12 –545
Off-period tax expense 36 –1,617
Additional non-domestic taxes –81 33
Effectivetaxexpense 5,176 1,321
DeferredincometaxesThe deferred income tax assets primarily arise from the differ-ence in provisions for pension commitments in accordance with tax laws on the one hand and IFRS on the other. In 2010, deferred income tax expense of EUR 1.139 million (previous year EUR 2.871 million) was recognized in profit and loss.
Intangible assets and property, plant and equipment
Financial assets
Current assets
Provisions
Liabilities
Tax losses and credits
Consolidation
Total
Analysisofdeferredtaxesandassets
inEUR000s 2010 2010 20092009
Deferred tax assets
104
402
70
5,733
605
2,244
–4,789
4,369
Deferred tax liabilities
6,644
20
7,545
214
211
0
–4,789
9,845
Deferred tax assets
120
430
226
5,190
479
2,025
–3,862
4,608
Deferred tax liabilities
5,792
26
7,298
147
134
0
–3,862
9,535
Change effecting net income
–868
–22
–375
–142
49
219
0
–1,139
Change effecting net income
–1,066
526
597
453
1,641
–199
919
2,871
78
OHB Technology AG | 2010
Consolidated financial statements
One subsidiary recognized deferred income tax assets on the unused tax losses of EUR 1.703 million (previous year EUR 1.680 million). Unused tax losses were available in the year under review. The forecast for the next five years indicates that the unused tax losses will be utilized in full. No deferred income taxes were recognized on the unused tax losses of EUR 23.895 million reported by Antwerp Space N.V. No deferred income taxes arose from the business combination.
(9)Non-controllinginterestsNon-controlling interests are valued at EUR 0.566 million (previous year EUR 1.858 million) and relate to MT Aerospace Holding GmbH and megatel GmbH.
IFRS/IASearningspershareBasic earnings per share are calculated by dividing the post-tax earnings attributable to the shares in question by the total number of shares with dividend entitlement. This indicator may be diluted by so-called potential shares – particularly options and subscription rights. There were no comparable rights as of the balance sheet date. Accordingly, there is no difference between basic and diluted earnings per share. The Company’s share capital stands at EUR 17,468,096.00. The calculations were based on 17,401,142 shares as the Company held 66,954 treasury shares as of the balance sheet date. The consolidated net profit of EUR 9.642 million was used for calculation pur-poses. Earnings per share for 2010 came to EUR 0.55 (previous year EUR 0.96).
NOTESONTHECONSOLIDATEDBALANCESHEET
(10)GoodwillandotherintangibleassetsThe balance sheet for the year ending December 31, 2010 includes goodwill of EUR 7.687 million (previous year EUR 7.687 million) (see table entitled “Goodwill”).
Goodwill
inEUR000s 2010 2009
Goodwillfromconsolidationof:STS Systemtechnik Schwerin GmbH 566 566
Timtec Teldatrans GmbH 115 115
Orbcomm Deutschland AG 556 556
Telematic Solutions S.p.A. 801 801
megatel GmbH 646 646
Kayser-Threde subgroup 5,003 5,003
Total 7,687 7,687
Goodwill was tested for impairment at the level of the legal entities (cash generating units as designated in the above table) to which goodwill is assigned.
Goodwill underwent impairment testing as of December 31, 2010. No impairments were identified.
The recoverable amount was calculated on the basis of the value in use, which in turn was determined by using a dis-counted cash flow method. This was based on the forecasts covering a period of 5 years approved by management for the companies concerned as well as assumed growth rates and EBIT margins in the light of order backlog and historical data as well as annual inflation rates. A pre-tax weighted average cost of capital (WACC) of 10.70% (previous year 12.10%) was applied for domestic goodwill and of 14.50% (previous year 13.06%) for non-domestic goodwill. No discount on growth was included in the calculation of the terminal value (previous year 1.0%). Goodwill and other intangible assets are analyzed on pages 68/69.
(11)Property,plantandequipmentAdditions in the year under review primarily entailed technical/electronic laboratory equipment, technical equipment and machinery, hardware, operating and business equipment and minor-value assets.
There are unrestricted ownership rights to the remaining assets classed as property, plant and equipment. The deprecia-tion amounts are set out in the consolidated statement of changes in assets. No impairment losses were recognized. The residual carrying amounts of the assets under finance leases stand at EUR 0.355 million (previous year EUR 0.936 million). Property, plant and equipment are analyzed on pages 68/69.
(12)SharesinassociatesThis item includes the cost of acquiring the investment in ELTA S.A. Toulouse, plus the share in its profit/loss for the year. The majority shareholder exercises a controlling influence on this entity’s business model.
(13)OtherfinancialassetsChanges in the carrying amounts of the other financial assets are as follows:
inEUR000s 2010 2009
Balance on January 1 10,039 8,315
Net fair-value gains/losses recognized in equity 143 718
Changes to consolidated companies –296 1,200
Additions 6,543 120
Disposals –1,075 –314
AmountonDecember31 15,354 10,039
The change in fair value recognized within equity relates to the remeasurement of the shares held in ORBCOMM Inc.
79
OHB Technology AG | 2010
Consolidated financial statements
It was remeasured due to the stock market price of ORBCOMM Inc. as of December 31, 2010 and the USD/EUR exchange rate as of that date.
(14)ReceivablesandotherassetsReceivables and other assets are recognized at amortized cost. Receivables of EUR 3.411 million (previous year EUR 4.755 mil-lion) are due for settlement in more than one year. The carrying amounts of other current assets and receivables primarily match their fair value. Receivables of EUR 81.592 million (previ-ous year EUR 51.955 million) relate to construction contracts recognized using the percentage-of-completion method.
Receivables and other assets mainly comprise current and non-current loans; there are no material interest or default risks.
As of the balance sheet date, currency forwards worth USD 8.0 million had been transacted to hedge underlying contracts of USD 2.6 million to cover the exports of a consolidated com-pany. The difference is reported as cashflow hedges for expected order receipts in 2011.
Trade receivables are due for settlement in less than one year and are reported at amortized cost, which generally equals their settlement amount net of any adjustments. Reasonable adjustments are made to allow for discernible risks. As of the balance sheet date, adjustments of a total of EUR 1.215 million had been made.
(15)InventoriesInventories increased over the previous year to EUR 103.939 million (previous year EUR 102.687 million). Prepayments received are not netted with inventories.
inEUR000s 2010 2009
Raw materials and supplies 20,141 20,374
Unfinished goods and services 77,482 68,056
Finished goods and merchandise 875 983
Payments on account made 5,441 13,274
Total 103,939 102,687
Prepayments made were allocated to inventories due to their close relationship.
(16)SecuritiesAs of the balance sheet date, the securities portfolio was valued at EUR 9.527 million (previous year EUR 26.113 million). This breaks down as follows: financial assets at fair value through profit or loss EUR 3.679 million (previous year EUR 20.342 million), available-for-sale financial assets EUR 0.589 million (previous year EUR 0.600 million) and loans and receivables EUR 5.259 million (previous year EUR 5.171 million).
Financial risks primarily comprise liquidity, market price and counterparty default risks. There are no material short-term liquidity or counterparty default risks as low-risk invest-ment funds are selected for the most part. In the interests for averting market price risks, virtually all cash is invested in funds which can be redeemed at short notice in order to achieve broad risk diversification.
(17)CashandcashequivalentsCash and cash equivalents were valued at EUR 83.271 million on the balance sheet date (previous year EUR 55.892 million) and comprised cash in hand and cash at banks. The cash at banks is due within six months and is exposed to only a minimal risk of any change in value.
(18)SubscribedcapitalSince September 30, 2009, the Company’s issued capital has equaled EUR 17,468,096.00 and is divided into 17,468,096 no-par-value ordinary bearer shares equivalent to a notional share of EUR 1.00 each in the Company’s issued capital. There is one vote for each share held.
(a)ContingentcapitalAt their annual general meeting held on January 23, 2001, the Company’s shareholders increased the Company’s share capital by approving the issue of a total of EUR 516,404.00 in the form of up to 516,404 bearer shares on a contingent basis. The contingent capital increase is to be used for granting options to entitled persons under the staff compensation system. The contingent capital increase may only be implemented if the holders of such options exercise these. The new shares are dividend-entitled for the first time in the year in the course of which they are issued. The Management Board is authorized subject to the Supervisory Board’s approval to determine the specific conditions for such contingent capital increase. In the event that options are granted to members of the Company’s Management Board, the Supervisory Board is authorized to determine the specific conditions for such contingent capital increase.
(b)AuthorizedcapitalAt their annual general meeting held on May 19, 2010, the shareholders passed a resolution authorizing the Company’s Management Board – with the Supervisory Board’s approval – to raise the share capital once or repeated times by a total of up to EUR 8,734,048.00 on a cash or non-cash basis (authorized capital) on or before May 18, 2015. The new shares may also be issued to the Company’s employees.
80
OHB Technology AG | 2010
Consolidated financial statements
The Company’s Management Board was authorized – subject to the Supervisory Board’s approval – to exclude the shareholders’ subscription rights in the following cases:(1) for fractional amounts;(2) for part of the authorized capital 2010 up to a maximum of
EUR 1,746,809.00 provided that the new shares are issued in return for cash capital contributions at a price not materially less than the stock-market price (Section 186 (3) Sentence 4 of the German Stock Corporation Act);
(3) for a part of the authorized capital 2010 up to a maximum of EUR 8,734,048.00 if the shares are issued as consideration for the acquisition of all or part of other companies and such acquisition is in the interests of the Company; or as consid-eration for cash capital contributions to have the Company’s stock listed in a foreign market in which it has previously not been admitted to trading .
The Management Board is additionally authorized subject to the Supervisory Board’s approval to determine the extent and nature of the option rights and the other conditions of issue.
(c)AuthorizationtoacquireandselltreasurystockAt the annual general meeting held on May 19, 2010, the share-holders authorized the Company to buy back treasury stock of up to a total of 10% of the Company’s share capital on or before May 18, 2015. Upon this authorization taking effect, the authori-zation granted on May 13, 2009 for the acquisition and utilization of treasury stock was revoked.
a) The Company is authorized to buy back a total of up to 10% of its own share capital in the amount existing as of the date on which the resolution was passed. At no time may the shares acquired by the Company together with other treasury stock already acquired or still held by it or attributable to it in accor-dance with Sections 71d, 71e of the German Stock Corporation Act exceed more than ten percent (10%) of its share capital.
The authorization may be exercised by the Company in full or in part, once or repeatedly or for different purposes and may also be exercised by dependent companies or companies in which OHB Technology AG holds a majority stake for their account or for third-party account.
The authorization expires on May 18, 2015. The authorization granted by the shareholders in their resolution passed on May 13, 2009 was canceled upon this new authorization taking effect.
b) The acquisition of shares must comply with the equal treat-ment principle (Section 53a of the Stock Corporation Act) and is executed at the Management Board’s discretion either via the stock market (1) or in a public offering addressed to all share-holders (2). In the second case, the provisions of the Securities
Acquisition and Transfer Act must be observed where applicable.
(1) If the Company buys back its own shares via the stock market, the purchase price paid per share (net of transaction costs) may not be any more than 10% above or below the aver-age closing price of the stock in XETRA trading (or an equivalent replacement system) on the Frankfurt stock exchange on the last three trading days prior to acquisition of the shares.
(2) If the Company buys back its own shares in a public offering addressed to all shareholders, the purchase price paid per share (net of transaction costs) may not be any more than 10% above or below the average closing price of the stock in XETRA trading (or an equivalent replacement system) on the Frankfurt stock exchange on the fifth, fourth and third trading days prior to the publication of the offer. If such a public offering is oversubscribed, the shares must be bought back on a quota system. Provision may be made for the preferred acceptance of a lower volume of up to 100 shares offered per shareholder and rounding in accordance with commercial provisions.
c) The Management Board is authorized to utilize the treasury stock acquired through the exercise of the authorization men-tioned above for all purposes permitted by law, including but not limited to the following:
(1) Acting with the approval of the Supervisory Board it may use the treasury stock to have the Company’s stock traded on foreign stock exchanges to which it has hitherto not been admitted.
(2) Subject to the approval of the Supervisory Board, it may offer or transfer the treasury stock to third parties for the pur-pose of acquiring companies, parts of companies or equity interests including but not limited to additions to existing equity interests.
(3) It may offer the treasury stock to the employees of the Company or other entities related to it in accordance with the definition in Sections 15 et seq. of the German Stock Corpora-tion Act as employee shares.
(4) Acting with the approval of the Supervisory Board, it may redeem the treasury stock without any need for a resolution of the shareholders approving such redemption or related activities.
d) The Management Board is authorized - subject to the approval of the Supervisory Board and without any obligation for a further resolution to be passed by the shareholders – to sell the treasury stock acquired in accordance with the above authorization or in any other manner either publicly or in the form of an offer to the shareholders provided that the sale is for cash and the price offered is not materially less than the price at which equivalent stock issued by the Company is trading on the stock market on the date of the sale. For the purposes of the
81
OHB Technology AG | 2010
Consolidated financial statements
above rule, the stock market price is defined as the arithmetic mean of the price fixed for the Company’s stock in the closing auctions in XETRA trading (or an equivalent replacement system) on the Frankfurt/Main stock exchange on the last five trading days before the date of the sale.
This authorization is limited to a total of 10% of the Com-pany’s share capital. The maximum of 10% is reduced by the prorated share in the share capital accounted for by shares which are issued during the term of this authorization as part of an equity issue in which pre-emptive shareholder rights are excluded in accordance with Section 186 (3) Sentence 4 of the German Stock Corporation Act. The volume covered by the authorization is also reduced by an amount equaling the pro-rated share in the share capital accounted for by conversion and/or option rights under bonds issued since the date on which this authorization takes effect in connection with which pre-emptive shareholder rights are excluded in accordance with Section 186 (3) Sentence 4 of the German Stock Corporation Act.
e) The aforementioned authorizations may be utilized once or repeatedly, in part or in full, individually or jointly.
f) The shareholders’ pre-emptive subscription rights with respect to the Company’s treasury stock are excluded in cases in which it is used in accordance with the authorizations described in c) (1) - (3) and d) above.
(19)SharepremiumThe share premium primarily comprises the cash proceeds from the stock-market flotation.
(20)RetainedearningsRetained earnings includes the negative goodwill arising from the consolidation of newly acquired companies up until 2002.
(21)UnrealizedgainsandlossesrecognizedunderequityThis equity item relates to the fair-value measurement of the shares held in ORBCOMM Inc. on the basis of the stock price on the balance sheet date net of the carrying amounts. This adjust-ment was recognized within equity.
It also includes gains and losses from cashflow hedges. In the year under review, no provisions which had been set aside in earlier years were released to profit and loss or netted against acquisition costs. It also includes the foreign currency translation differences arising in connection with one indepen-dent subsidiary.
(22)TreasurystockOn October 19, 2007, the Management Board of OHB Technology AG decided to implement a stock buyback program and to acquire up to 100,000 of the Company’s shares in accordance with a resolution passed by the shareholders at the annual general meeting on May 10, 2007. The shares are to be used to acquire all or part of other companies and businesses and/or for employee bonus programs for the Company and its affiliates as well as for executive remuneration schemes. The Company started buying back shares on the stock market floor on November 1, 2007.
On the balance sheet date, treasury stock comprised 66,954 shares (previous year: 66,954). The treasury stock was mea-sured at an average price of EUR 9.439 per share and is shown separately from the Company’s share capital on the face of the balance sheet.
(23)Non-controllinginterestsThe non-controlling interests are valued at EUR 11.069 million (previous year EUR 11.364 million) and relate to the co-share-holders in the MT Aerospace subgroup and megatel GmbH.
Changesinequitynotrecognisedthroughtheincomestatement
inEUR000s
Exchange differnece on translating foreign operations
Net gains/losses from the measuremenmt of financial assets recorded under equity
Cashflow Hedges
Total
before tax
16
143
89
248
before tax
0
718
84
802
tax effects
0
0
–28
–28
tax effects
0
–1
–26
–27
net
16
143
61
220
net
0
717
58
775
2010 2009
82
OHB Technology AG | 2010
Consolidated financial statements
(24)Provisionsforpensionsandsimilarobligations.Provisions for pensions and similar obligations break down as follows:
inEUR000s 2010 2009
Pensions 71,759 70,836
Similar obligation 2,533 732
Provisionsforpensionsandsimilarobligations 74,292 71,568
The OHB Group has made arrangements for retirement benefits for entitled employees in the Space Transportation + Aerospace Structures and Space International business units.
The amount of the future benefits is generally based on the length of service, amount of remuneration and position held within the Company. The direct and indirect obligations encom-pass those under existing pensions and entitlement to future pensions and retirement benefits.
Reinsurance has been taken out to cover retirement benefit obligations. Not all of these reinsurance policies satisfy the conditions for classification as plan assets. The latter are reported within other non-current assets. The reinsurance policies which satisfy the conditions for classification as plan assets are netted with the retirement benefit obligations.
There were no extraordinary expenses or income as a result of the termination of any plans or on account of the cur-tailment or transfer of benefits in the year under review. The calculation of post-retirement benefit obligations takes account of market interest rates as well as trends in wages and salaries, pensions and fluctuations on the basis of the following actuarial assumptions:• Discount rate: 5.00% (previous year 5.50%)• Wage/salary trend: 3.00% (previous year 3.00%)• Wage drift: 0.00% (previous year 0.00%)• Pension drift: 2.00% (previous year 2.00%)
The following alternative actuarial assumptions apply to the recently acquired subsidiary Antwerp Space:• Discount rate: 4.30% • Wage/salary trend: 3.00%
• Pension trend: 2.00% • Expected return on plan assets: 4.00%
These parameters are also applied in the following year to the calculation of the cost of the entitlement acquired. The total cost of defined benefit pension commitments breaks down as follows:
inEUR000s 2010 2009
Current service cost 929 711
Interest cost 3,789 3,864
Expect income (–) from plan assets –66 0
Non-amortized actuarial gains (–)/losses (+) –23 –26
Total 4,629 4,549
The present values of the defined benefit obligations changed as follows:
inEUR000s 2010 2009
Present value of the defined benefit obligations on January 1 68,709 66,117
Changes to consolidated companies 6,257 1,368
Present value of the entitlement acquired in the year 929 711
Interest expenditure on entitlement already acquired 3,789 3,864
Payments from provisions –3,973 –3,367
Actuarial gains (-)/losses (+) 4,722 16
PresentvalueofthedefinedbenefitobligationsonDecember31 80,433 68,709
The plan assets break down as follows
inEUR000s 2010 2009
Value of plan assets on January 1 0 0
Changes to companies consolidated 7,056 0
Payments received 301 0
Payments made –640 0
Expected income 66 0
Actuarial gains (+)/losses(–) 269 0
ValueofplanassetsonDecember31 7,053 0
Actual income from plan assets came to EUR 0.336 million.
Statementofchangesinprovisions
inEUR000s
Pension provisions
– of which non-current
Other provisions
– of which non-current
Total
Balance on December 31,
2009
71,568
71,568
20,748
2,828
92,315
Added
5,836
5,836
12,809
1,353
18,645
Utilized
3,946
3,946
14,629
2,378
17,806
Released
0
0
3,241
0
3,241
Balance
–256
–256
0
0
–256
Changes to consolidated companies
1,090
1,090
3,082
639
4,172
Balance on December 31,
2010
74,292
74,292
18,768
2,442
93,060
83
OHB Technology AG | 2010
Consolidated financial statements
The present value is reconciled with the defined benefit (defined benefit liability (+)/defined benefit asset (–)) as follows:
inEUR000s 2010 2009
Actual present value of the defined benefit obligation on December 31
80,433
68,709
Fair value of plan assets –7,053 0
Unrecognized actuarial gains (+)/losses (–) –2,350 2,126
Pensionobligationrecordedonthebalancesheet 71,030 70,835
The pension obligation breaks down into a defined benefit liability and defined benefit asset as follows:
inEUR000s 2010 2009
Defined benefit asset –729 0
Defined benefit liability 71,759 70,835
The present values of the defined-benefit obligations stood at EUR 72.895 million as of December 31, 2005, EUR 72.485 mil-lion as of December 31, 2006, EUR 65.629 as of December 31, 2007, EUR 65.357 million as of December 31, 2008, EUR 68.709 million as of December 31, 2009 and EUR 73.380 million as of December 31, 2010.
As a matter of principle, actuarial gains and losses not exceeding 10% of the present value of the obligations and the fair value of the fund assets are not recognized in accordance with the corridor method (IAS 19).
The changes in the present value of the defined benefit obli-gations and plan assets caused by changes in the companies consolidated are due to the first-time consolidation of Carlo Gavazzi Space S.p.A. in the Space International business unit as of October 1, 2009 and first-time consolidation of Antwerp Space N.V. as of August 1, 2010.
The present value of the defined benefit obligations of EUR 0.768 million (previous year EUR 0.645 million) was calculated in accordance with the entry age normal method.
The fractional values are computed using actuarial princi-ples on the basis of the 2005 G biometric tables compiled by Prof. Dr. Klaus Heubeck and an interest rate of 4.7 to 5.2%. With respect to these provisions, it is assumed that the application of the projected unit credit method provided for in IAS 19 does not result in any major differences in this item.
(25)Otherprovisions(currentandnon-current)Non-current provisions primarily comprise provisions for reduced pre-retirement working commitments in the Space Transportation and Aerospace Structures segment. Current provisions of EUR 5.598 million (previous year EUR 6.867 mil-lion) were set aside for the cost of purchased materials and services for which deliveries had already been received but for
which the corresponding invoices were still outstanding. Other provisions primarily relate to obligations towards employees of EUR 8.165 million (previous year EUR 8.874 million).
(26)Non-currentfinancialliabilitiesThis mostly entails non-current liabilities towards banks owed by the Italian subsidiary Carlo Gavazzi Space S.p.A. (EUR 42.044 million). These liabilities are due for settlement in more than twelve months after the balance sheet date. The average interest rate on these liabilities stands at 2.79%.
(27)Non-currentprepaymentsreceivedThis entails prepayments made by customers for contracts under construction which are due for completion in more than twelve months.
(28)CurrentfinancialliabilitiesThis mostly entails current liabilities towards the banks of the Italian subsidiary Carlo Gavazzi Space S.p.A. (EUR 3.184 mil-lion), Telematic Solutions S.p.A. (EUR 0.416 million) and MT Aerospace AG (EUR 0.811 million)
(29)TradepayablesLiabilities are reported at their settlement amount. All liabili-ties are due for settlement within one year.
(30)CurrentprepaymentsreceivedThis item comprises prepayments made by customers for contracts under construction due for completion in less than twelve months.
(31)OthercurrentliabilitiesThese primarily entail liabilities to minority and former share-holders.
AdditionaldisclosuresonfinancialinstrumentsOriginated financial assets primarily comprise other financial assets, receivables, securities available for sale and held to maturity and cash and cash equivalents. The available-for-sale and held-for-trading financial assets are reported at their fair value and the other financial assets at amortized cost. Originated financial liabilities primarily comprise liabilities measured at amortized cost. Holdings of originated financial instruments are reported on the face of the balance sheet and measured at their maximum default risk. Adjustments are made for all dis-cernible risks of default in financial assets.
The OHB Group does not have any financial liabilities whose conditions are contingent upon certain financial covenants being observed or reached.
The historical cost of loans and receivables mostly equals their fair value (nominal amount less any impairment). The fair
84
OHB Technology AG | 2010
Consolidated financial statements
value of financial liabilities at amortized cost is derived from their discounted settlement amounts. Otherwise, fair values are determined by reference to listed prices.
In October 2008, the IASB released revisions to IAS 39 “Financial Instruments: Recognition and Measurement”, and IFRS 7, “Financial Instruments: Disclosures” entitled “Reclassi-fication of Financial Assets”. The revisions to IAS 39 permit reclassification of non-derivative financial assets recognized as financial assets at fair value through profit or loss in certain circumstances. The revisions to IAS 39 and IFRS 7 take retro-active effect as of July 1, 2008. The Company identified securi-ties to which these revisions may apply as those which it clearly did not intend to sell and which were to be held to maturity as of July 1, 2008. These securities were previously recognized as “held for trading” and are now categorized as “loans and receivables”.
As of December 31, 2010, these securities were valued at EUR 5.259 million (previous year EUR 5.171 million) in accordance with IAS 39 and IFRS 7. The effective interest rates of these securities are between 2% and 6% with an expected cash flow of EUR 5.635 million. Interest income of EUR 0.088 million was recorded on these securities due to the application of the effec-tive interest method.
CreditrisksCredit risks are generally low, the portfolio of receivables is broadly diversified (no risk clustering) and business is trans-acted only with investment-grade counterparties.
Carryingamountsoffinancialinstrumentsbytypein2010
Carryingamountsoffinancialinstrumentsbytypein2009
Financial assets
0
0
4,321
0
Financial assets
0
0
4,178
0
Trade
receivables
0
140,087
0
0
Trade
receivables
0
132,896
0
0
Other receivables and assets
0
18,184
0
0
Other receivables and assets
0
19,947
0
0
Securities and cash and cash
equivalents
0
83,271
589
3,679
Securities and cash and cash
equivalents
0
55,892
600
20,342
Total
0
241,542
4,910
3,679
Total
0
208,735
4,777
20,342
inEUR000s
Held-to-maturity assets (HtM)
Loans and receivables (LaR)
Available-for-sale assets (AfS)
Trading assets (FAHfT)
inEUR000s
Financial liabilities measured at amortised cost (FLAC)
Trading liabilities (FLHfT)
inEUR000s
Held-to-maturity assets (HtM)
Loans and receivables (LaR)
Available-for-sale assets (AfS)
Trading assets (FAHfT)
inEUR000s
Financial liabilities measured at amortised cost (FLAC)
Trading liabilities (FLHfT)
Financial liabilities
47,194
0
Financial liabilities
43,963
0
Trade receivables
67,429
0
Trade receivables
56,966
0
Other
receivables and assets
132,480
0
Other
receivables and assets
127,119
0
Securities and cash and cash
equivalents
11,218
0
Securities and cash and cash
equivalents
11,802
0
Total
258,321
0
Total
239,850
0
85
OHB Technology AG | 2010
Consolidated financial statements
Loansettlementperiods
inEUR000s
Non-current financial obligations
Non-current prepayments received
Current financial liabilities
Trade payables
Current prepayments received on orders
Tax liabilities
Other current liabilities
Total
Less than one year
27,260
0
4,396
67,429
66,758
4,901
6,317
177,061
One to two years
2,729
2,742
0
0
3,904
0
0
9,375
Three to five years
7,119
57,020
0
0
0
0
0
66,139
More than five years
5,690
0
0
0
0
0
0
5,746
Total
42,798
61,818
4,396
67,429
70,662
4,901
6,317
258,321
Liquidityrisks
Netgains/lossesbycategoryin2010
inEUR000s
Financial assets at fair value through profit and loss FAFVPL
of which financial instruments designated using the fair value option
of which held for trading
Held-to-maturity financial assets HtM
Loans and receivables LaR
Available-for-sale financial assets AfS
Financial liabilities at fair value through profit and loss FLFVPL
of which financial instruments designated using the fair value option
of which held for trading
Financial liabilities at amortized cost FLAC
Historical cost
14,943
0
3,909
0
241,542
8,062
0
0
0
190,187
Fair value
14,713
0
3,679
0
241,542
4,910
0
0
0
190,187
Net fair-value gains/losses recognized in
equity
0
0
0
0
89
143
0
0
0
0
Net profit/loss for the period
–14
0
–14
0
88
3
0
0
0
0
Netgains/lossesbycategoryin2009
inEUR000s
Financial assets at fair value through profit and loss FAFVPL
of which financial instruments designated using the fair value option
of which held for trading
Held-to-maturity financial assets HtM
Loans and receivables LaR
Available-for-sale financial assets AfS
Financial liabilities at fair value through profit and loss FLFVPL
of which financial instruments designated using the fair value option
of which held for trading
Financial liabilities at amortized cost FLAC
Historical cost
26,382
0
20,521
0
208,735
8,076
0
0
0
239,850
Fair value
26,204
0
20,342
0
208,735
4,777
0
0
0
239,850
Net fair-value gains/losses recognized in
equity
0
0
0
0
0
718
0
0
0
0
Net profit/loss for the period
79
0
79
0
–741
–2
0
0
0
0
86
OHB Technology AG | 2010
Consolidated financial statements
OTHERDISCLOSURES
SegmentreportingIFRS 8 stipulates that operating segments are to be defined on the basis of internal segment reporting which is regularly reviewed by the Company’s chief operating decision maker with respect to the allocation of resources to these segments and the assessment of their profitability. The main management ratios used within the OHB Group are total revenues and EBIT. Information reported to the Management Board as the chief operating decision maker for the purposes of allocating resources to the Company’s segments as well as the assess-ment of their profitability mostly covers the types of goods and services which are produced or provided.
The Group comprises the following reportable segments as defined in IFRS 8:• Space Systems + Security• Payloads + Science • Space Transportation + Aerospace Structures• Space Transportation International• Telematics + Satellite Operations
The segments are described in detail in the management report Segment income, expenses and earnings also entail business relations between the business units. These transfers were netted in full. The measurement principles applied in segment reporting are identical to those applied in the preparation of the consolidated financial statements. The holding company is shown separately as most of the equity interests are held on
CurrencyrisksThe USD/EUR exchange rate influences income in aviation busi-ness. All orders and receivables denominated in US dollars have been hedged by means of currency forwards for 2011.
In the Space Systems + Security business unit, only a single contract is exposed to the USD exchange rate. The budget for 2011 assumes an exchange rate of USD/EUR 1.29. If the exchange rate increases by USD 0.10 over the end-of-year exchange rate, this would cause the planned income to drop by EUR 0.137 million as of the balance sheet date.
InterestrisksGenerally speaking, investments with low interest rates are preferred so as to avert interest risks and are subject to normal market fluctuation. One non-domestic Group member has credit facilities of EUR 54 million with various banks.
Depending on the extent of utilization, these facilities are subject to normal market fluctuation in interest rates. Assum-ing average utilization of a maximum of EUR 39 million, a change by one percentage point in the interest rate would result in additional expenditure of EUR 0.390 million.
The risk report included in the management report describes in detail the liquidity and market risks.
Segmentreporting
inEUR000s
Sales
of which internal sales
Total revenues
Cost of materials and services purchased
EBITDA
Depreciation and amortization
EBIT
Non-current assets
Current assets
Totalassets
Equity
Liabilities
Totalequityandliabilities
Investments net of financial assets
SpaceSystems+Security
2010
206,757
5,878
210,052
170,423
9,786
2,309
7,478
11,830
85,634
97,464
19,175
78,289
97,464
3,120
2009
88,727
12,325
89,923
61,261
5,573
2,133
3,440
11,024
63,527
74,551
17,738
56,813
74,551
2,974
2010
42,657
2,411
53,653
23,093
4,737
945
3,792
4,247
32,285
36,532
3,331
33,201
36,532
1,144
Payloads+Science
2009
61,959
177
64,269
32,615
5,656
1,562
4,094
4,556
36,967
41,523
10,132
31,391
41,523
997
2010
53,227
7,875
57,431
35,934
3,766
1,964
1,802
24,227
87,456
111,683
15,440
96,243
111,683
3,162
SpaceInternational
2009
17,696
2,355
19,870
10,476
4,208
473
3,735
23,510
65,410
88,921
12,617
76,304
88,921
472
87
OHB Technology AG | 2010
Consolidated financial statements
Segmentreporting
2010
133,160
245
138,293
62,696
10,351
4,213
6,138
50,021
170,696
220,717
26,219
194,498
220,717
4,698
SpaceTransportation+AerospaceStructures
2009
123,176
109
151,015
74,591
15,585
4,948
10,637
42,776
186,156
228,932
27,793
201,139
228,932
7,872
2010
14,330
7,840
14,831
7,908
731
1,522
-791
5,846
18,923
24,769
7,561
17,208
24,769
408
Telematics+SatelliteOperations
2009
17,067
5,353
18,644
10,229
2,065
1,357
708
6,959
21,940
28,899
8,765
20,134
28,899
2,129
Holdingcompany
2010
0
0
8,460
0
4,317
57
4,260
40,903
17,075
57,978
53,767
4,211
57,978
51
2009
0
0
2,542
0
–1,487
40
–1,527
41,236
11,015
52,252
41,342
10,910
52,252
117
2010
–24,683
–24,249
–29,397
–24,438
–1
–52
51
–30,055
–52,692
–82,747
–20,323
–62,424
–82,747
0
Consolidation
2009
–21,461
–20,319
–24,445
–21,245
59
375
–316
–30,299
–42,872
–73,173
–20,263
–52,910
–73,173
0
Total
2010
425,448
0
453,323
275,616
33,688
10,958
22,730
107,019
359,377
466,396
105,170
361,226
466,396
12,583
2009
287,164
0
321,818
167,927
31,659
10,888
20,771
99,762
342,143
441,905
98,124
343,781
441,905
14,561
Pro-formaincomestatementfor2010
in EUR 000s
Sales
Total revenues
Cost of materials and services purchased
Depreciation and amortization
EBT
Groupstructure(old)
422,922
445,886
274,140
10,893
10,930
AntwerpSpaceN.V,
4,887
4,982
3,832
304
–4,873
Negativegoodwill
0
4,338
0
0
4,338
Groupstructure(new)
427,809
455,206
277,972
11,197
10,395
this level. OHB Technology AG exercises the function of an active holding company. The share of loss of ELTA S.A., which is carried at equity, was assigned to the holding company’s net finance income/expense (loss of EUR 0.388 million). The carry-ing amount of the investment in ELTA S.A. of EUR 1.895 million was allocated to the holding company’s assets. As of December 31, 2010, ELTA S.A. had assets of EUR 33.436 million, equity of EUR 5.574 million and debt capital of EUR 27.862 million. ELTA S.A. reported net loss for 2010 of EUR 2.367 million.
Sales (non-consolidated) break down by product group as fol-lows:
inEUR000s 2010 2009
Space technology 405,848 274,512
Aviation 7,953 13,785
Antennas 23,638 2,921
Automotive 2,794 1,763
Process control technology 4,280 5,909
Telematics 5,618 9,737
Total 450,131 308,627
OHB Technology AG’s non-consolidated sales break down by region (location of customer) as follows:
inEUR000s 2010 2009
Germany 80,837 118,688
Rest of Europe 358,488 183,449
Rest of the world 10,806 6,490
Total 450,131 308,627
The OHB Group’s two largest customers, each of which account for more than 10% of sales, generated the following sales: EUR 133.759 million and EUR 50.083 million, respectively. These sales arose in the Space Systems + Security, Payloads + Science and Space International segments.
Non-current assets with a carrying amount of EUR 91.755 million (previous year EUR 86.167 million) are located in Germany and those with a carrying amount of EUR 28.484 mil-lion (previous year EUR 28.129 million) are located in other countries.
88
OHB Technology AG | 2010
Consolidated financial statements
NotesonthecashflowstatementWith respect to the purchase price paid for Antwerp Space N.V., reference should be made to the notes on acquisitions. Cash and cash equivalents of EUR 5.451 million entered the OHB Group on the date of first-time consolidation. Cash and cash equivalents were provided as collateral for guarantee facilities of up to EUR 17.5 million for a Group member. Corresponding drawing restrictions apply if and to the extent that the guaran-tee facilities are utilized. Cash and cash equivalents as of December 31, 2010 are recorded net of fixed-term deposits due for settlement in more than three months (2010: EUR 4.192 mil-lion; 2009: EUR 0).
OtherfinancialobligationsOther financial obligations under leases are valued at EUR 47.869 million (previous year EUR 54.946 million); of this, an amount of EUR 9.952 million (previous year EUR 9.334 million) is due for settlement in less than one year, an amount of EUR 32.318 million (previous year EUR 32.696 million) in one to five years and an amount of EUR 5.599 million (previous year EUR 12.916 million) in more than five years. Operating leases entail financial obligations of EUR 12.879 million (previous year EUR 1.226 million) due for settlement in one to five years; an amount of EUR 3.239 million (previous year 0.406 million) is due for settlement in less than one year. There are no operating leases with a term of more than five years.
The main operating leases are for buildings and have a term of one to five years.
Following the transfer of business activities held by a Group company to a subsidiary, other financial obligations of EUR 69.705 million (previous year EUR 69.705 million) due for settle-ment in less than five years have arisen in the form of letters of comfort.
There are no other obligations necessitating an outflow of resources. No use was made of financial derivatives. OHB-Technology AG has issued a declaration of subordination for Timtec Teldatrans GmbH towards third-party debtors with respect to its own receivables for an amount of EUR 0.671 mil-lion. The Company has not issued any guarantees for liabilities held by ELTA SA. As of the balance sheet date, there were obli-gations under guarantees of EUR 27.202 million (previous year EUR 26.426 million). OHB Technology AG issued letters of com-fort as collateral for current account facilities of a total of EUR 3.5 million granted to a Group member. As of the balance sheet date, these current account facilities had not been utilized.
OHB Technology AG has issued a letter of comfort in favor of a customer for the completion of a project by a Group member.
Kayser-Threde GmbH has issued a declaration of subordi-nation for Rapid Eye AG towards third-party debtors with respect to its own receivables for an amount of EUR 0.389 mil-
lion. It has also issued a letter of comfort limited to EUR 0.120 million for VRS Verkehr Raumfahrt Systemtechnik GmbH.
RiskreportonfinancialinstrumentsFinancial risks and their management within the Group are described in detail in the risk report set out in the management report.
EmployeesThe average head count stood at 1,615 in the year under review (previous year 1,380).
MANAGEMENTBOARDANDSUPERVISORYBOARD
The Company’s Management Board comprises:• Mr. Marco R. Fuchs, Lilienthal, chairman• Prof. Dott. Ing. h.c. Manfred Fuchs, Bremen• Mr. Ulrich Schulz, Bremen
The Company’s Supervisory Board comprises:• Mrs. Christa Fuchs, Bremen, managing shareholder of
VOLPAIA Beteiligungs-GmbH, Bremen, chairwoman• Prof. Dr.-Ing. Hans J. Rath, Wilstedt, Professor at the
University of Bremen, deputy chairman• Prof. Heinz Stoewer, St. Augustin, Professor em. Space Systems
Engineering, Technical University of Delft, Netherlands, managing director of Space Associates GmbH, St. Augustin
Offices held by members of the Company’s Management Board and Supervisory Board in other supervisory boards and man-agement bodies as defined in Section 125 (1) 3 of the German Stock Corporation Act in 2010:• Mr. Marco R. Fuchs, beos GmbH, Bremen, member of the
supervisory board (Group mandate); ZARM Technik AG, Bremen, member of the supervisory board; MT Aerospace AG, Augsburg, deputy chairman of the supervisory board (Group mandate)
• Prof. Dott. Ing. h.c. Manfred Fuchs, ATB GmbH, Bremen, member of the supervisory board (Group mandate); OHB-System AG, Bremen, chairman of the supervisory board (Group mandate); beos GmbH, Bremen, member of the supervisory board (Group mandate); MT Aerospace AG, Augsburg, member of the supervisory board (Group mandate)
• Prof. Dr. Ing. Hans J. Rath, ZARM Technik AG, Bremen, chair-man of the supervisory board; beos GmbH, Bremen, member of the supervisory board
• Mrs. Christa Fuchs, ORBCOMM Deutschland AG, Bremen, chairwoman of the supervisory board (Group mandate); Cosmos Space Systems AG, Bremen, chairwoman of the supervisory board (Group mandate)
89
OHB Technology AG | 2010
Consolidated financial statements
SecuritiesheldbymembersoftheCompany’sManagementBoardandSupervisoryBoard
asofDecember31,2010 Shares +/–2010/09
Christa Fuchs, Chairwoman of the Supervisory Board 1,500,690 –
Professor Heinz Stoewer, Member of the supervisory board 1,000 –
Marco R. Fuchs, Chairman of the Management Board 2,684,796 –
Prof. Manfred Fuchs, member of the Management Board 3,763,064 –500,000
Ulrich Schulz, member of the Management Board 54 –
ExemptionfromthedutytodisclosethefinancialstatementsoftheGroupcompaniesAt their meeting of March 17, 2010, the shareholders of OHB-System AG passed a resolution to adopt the exemption provi-sions in Section 264 (3) of the German Commercial Code with respect to disclosure of the annual financial statements.
RelatedpartiesdisclosuresThe related parties as defined in IAS 24 are Mrs. Christa Fuchs, Prof. Dott. Ing. h.c. Manfred Fuchs, Marco R. Fuchs, Ulrich Schulz, Dr. Fritz Merkle, Berry Smutny, Frank Negretti, Jürgen Breitkopf, Lanfranco Zucconi, Hans J. Steininger, Dr. Wolfgang Konrad and Walter H. Köppel.The following companies are related parties:• OHB Grundstücksgesellschaft, Achterstraße GmbH & Co. KG,
Bremen• OHB Grundstücksgesellschaft, Kitzbühler Straße GmbH &
Co. KG, Bremen• OHB Grundstücksgesellschaft, Universitätsallee GmbH & Co.
KG, Bremen• OHB Grundstücksgesellschaft, Karl-Ferdinand-Braun-
Straße GmbH & Co. KG, Bremen• VOLPAIA Beteiligungs-GmbH, Bremen• Apollo Capital Partners GmbH, Munich• Immobiliare Gallarate, Milan• KT Grundstücksverwaltungs GmbH & Co. KG, Munich
Business transactions with related parties are conducted on arm’s length terms. In the year under review, sales and other income of EUR 0.03 million (previous year: EUR 0.020 million) arose from transactions with related parties, while expenditure on goods and services purchased and rentals came to around EUR 4.113 million (previous year: EUR 4.756 million). Outstand-ing receivables as of the balance sheet date were valued at EUR 0.075 million (previous year EUR 0.080 million). As of December
31, 2010, there were liabilities of EUR 0.362 million (previous year EUR 0).
References should also be made to the Company’s explana-tions on the related parties report included in the management report in accordance with Section 312 of the German Stock Corporation Act.
DeclarationofconformitywiththeCorporateGovernanceCodepursuanttoArticle161oftheJointStockCompaniesActThe Management Board and the Supervisory Board have pub-lished the declaration required pursuant to Section 161 of the German Stock Corporation Act confirming that save for a few small exceptions (see Corporate Governance on page 62–63) the Group already conforms to the German Corporate Gover-nance Code and will continue to do so in the future.The declaration of conformance is available on the Internet at:www.ohb-technology.de > Investor Relations > Corporate Governance > Declaration of Compliance
AllocationofearningsThe single-entity financial statements prepared for OHB Tech-nology AG pursuant to German GAAP (HGB) for the year ending December 31, 2010 carry net profit for the year of EUR 16,272,055.39. OHB Technology AG exercises the function of an active holding company. Its main assets comprise investments which were carried at a value of EUR 42.944 million on the bal-ance-sheet date. OHB Technology AG’s equity stood at EUR 55.523 million on December 31, 2010. The Company’s single-entity financial statements carry cash and cash equivalents of EUR 0.234 million. Income of EUR 5.586 million under profit transfer agree-ments and from the share of profit of associates of EUR 8.856 mil-lion made a particular contribution to net profit for 2010.
The Management Board will be asking the shareholders to pass a resolution providing for the Company’s unappropriated surplus of EUR 16,272,055.39 for 2010 to be allocated as follows.
The figures stated for the total dividend and the amount to be carried forward are based on the number of dividend-entitled shares as of the date of the Management Board’s allocation proposal.
Pursuant to Section 71b of the German Stock Corporation Act, the Company’s treasury stock (66,954 shares) as of the bal-ance sheet date is not dividend-entitled. If the number of shares held as treasury stock on the date on which the shareholders pass a resolution adopting the proposal for the allocation of the Company’s unappropriated surplus is greater or smaller than on the balance sheet date, the amount payable to the share-holders will be increased or, as the case may be, decreased by the amount attributable to the difference in the number of shares. The amount to be carried forward will be adjusted
90
OHB Technology AG | 2010
Consolidated financial statements
accordingly. However, the distributable dividend per dividend-entitled share will change.
If necessary, the shareholders will be presented with a correspondingly modified proposal for the allocation of the Company’s unappropriated surplus.
Allocationofearnings
inEUR000s 2010
Dividend of EUR 0.30 proposed for each
dividend entitled share (17,401,142 shares)
5,220,342.60
Amount to be carried forward 11,051,712.79
Unappropriated surplus 16,272,055.39
CompensationAs a matter of principle, the compensation paid to the members of the Management Board comprises fixed and variable components. There are currently no share-based compensation components or compensation components with a long-term incentive effect.The principles of the compensation system as well as the indi-vidualized compensation paid to the Management Board are described in detail in the compensation report, which forms part of the management report (page 62). The total compensa-tion paid to the members of the Management Board for 2010 came to EUR 1.382 million (previous year EUR 0.680 million).
The total compensation paid to members of the Supervisory Board for 2010 came to EUR 0.040 million (previous year: EUR 0.040 million). Of this, the chairwoman of the Supervisory Board received EUR 0.020 million and the other two members of the Supervisory Board EUR 0.010 million each. Variable compensation components were dispensed with.
Mrs. Christa Fuchs received compensation of EUR 0.117 mil-lion (previous year EUR 0.140 million) for her advisory services for members of the OHB Technology Group in the year under review. Prof. Heinz Stoewer (previous year EUR 10,500) and Prof. Hans J. Rath (previous year EUR 5,800) did not receive any fees for the provision of consulting services in the year under review.
AuditorfeesandservicesIn the period under review, the OHB Group recorded the follow-ing fees paid to BDO AG Wirtschaftsprüfungsgesellschaft, Hamburg, the auditors of its financial statements:• Statutory audit of the annual financial statements: EUR 0.173
million• Tax consulting services: EUR 0.094 million• Other services: EUR 0.001 million
EventsafterthebalancesheetdateOn February 10, 2011, MT Aerospace Holding GmbH signed a contract for the acquisition of the drive components supplier Aerotech Peissenberg GmbH & Co. KG together with its affili-ates in France and the Czech Republic with retroactive effect from January 1, 2011. The seller is the Drosten Group, Grün-wald. The purchase price stood at EUR 1. With staff numbering some 490, Aerotech Peissenberg together with its affiliates generated sales of around EUR 46 million in 2010. Order receipts were valued at roughly EUR 86 million at the end of 2010. The company is expected to be consolidated as of March 1, 2011. The measurement of the assets, liabilities and equity capital in accordance with IFRS has not yet been completed as Aerotech Peissenberg has previously not prepared its financial statements in accordance with IFRS.
The consolidated financial statements were approved by the Management Board for publication after the Supervisory Board’s meeting of March 15, 2011.
The Management BoardBremen, March 14, 2011
Ulrich Schulz
Marco R. Fuchs
Prof. Dott. Ing. h.c. Manfred Fuchs
91
OHB Technology AG | 2010
Consolidated financial statements
AUDITOR‘SCERTIFICATE
“We have audited the consolidated financial statements pre-pared by OHB Technology AG, comprising the balance sheet, statement of comprehensive income, income statement, cash flow statement, statement of equity movements and notes, as well as the Group management report for the financial year commencing on January 1, 2010 and ending on December 31, 2010. The preparation of the consolidated financial statements and the Group management report in accordance with the IFRSs, as they are to be applied in the EU, the supplementary provisions of German commercial law in accordance with Section 315 (1) HGB are the responsibility of the Company’s statutory representatives. Our responsibility is to express an opinion on the consolidated financial statements and the Group management report on the basis of our audit.
We conducted our audit of the consolidated financial state-ments in accordance with Section 317 HGB and the German generally accepted standards for the audit of financial state-ments promulgated by the Institut der Wirtschaftsprüfer (IDW). Those standards require that we plan and perform the audit such that misstatements materially affecting the presentation of the net assets, financial position and results of operations in the consolidated financial statements in accordance with the applicable principles of proper accounting and in the Group management report are detected with reasonable assurance. Knowledge of the business activities and the economic and legal environment of the Group and evaluations of possible misstatements are taken into account in the determination of audit procedures. The effectiveness of the accounting-related internal control system and the evidence supporting the disclo-
sures in the Group annual financial statements and the Group management report are examined primarily on a test basis within the framework of the audit. The audit includes assessing the annual financial statements of the companies included in the consolidation, the definition of the companies to be included in consolidation, the accounting and consolidation principles used and significant estimates made by the legal representa-tives as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.
Our audit has not led to any reservations.
In our opinion based on the results of our audit, the consoli-dated financial statements comply with the IFRSs as they are to be applied in the EU, the supplementary provisions of German commercial law in accordance with Section 315 (1) HGB and in the light of these provisions give a true and fair view of the net assets, financial position and results of operations of the Group. The Group management report is consistent with the consoli-dated financial statements and on the whole provides a suitable understanding of the Group’s position and suitably presents the risks to future development.”
Hamburg, March 14, 2011BDO AG Wirtschaftsprüfungsgesellschaft
DeclarationoftheManagementBoardTo the best of our knowledge, and in accordance with the appli-cable reporting principles, the consolidated financial statements give a true and fair view of the assets, liabilities, financial posi-tion and profit or loss of the group, and the Group management report includes a fair review of the development and perfor-mance of the business and the position of the group, together
with a description of the principal opportunities and risks asso-ciated with the expected development of the Group.
The Management BoardBremen, March 14, 2011
92
OHB Technology AG | 2010
Further disclosures
imprint
Copyandcontent:OHB Technology AG, Bremen, GermanyPvF Investor Relations, Eschborn, Germany
Conceptanddesign:moskito Kommunikation und Design, Bremen, Germany
Photos:Arianespace S.A., Evry, FranceCarlo Gavazzi Space S.p.A., Milan, ItalyCarl-Christian Meyer, Bremen, GermanyEuropean Space Agency, Paris, Francefotoetage (Alasdair Jardine, Kay Michalak, Michael Jungblut), Bremen/Berlin, GermanyGetty ImagesGulf International Security Systems, Abu Halifa, KuwaitInstituto Nazionale di Astrofisica, Sardinia, ItalyKayser-Threde GmbH, Munich, GermanyMax-Planck-Institut für Radioastronomie, Bonn, Germanymoskito Kommunikation und Design, Bremen, GermanyMT Aerospace AG, Augsburg, GermanyNational Aeronautics and Space Administration, Washington, USANovolipetsk Steel, Lipetsk, RussiaOHB-System AG, Bremen, GermanyOHB Technology AG, Bremen, GermanyRobert Pack, Mühlheim, Germany
Editing:Zertani GmbH & Co. Die Druckerei KG, Bremen, Germany
Printedby:BerlinDruck, Achim bei Bremen, Germany
Contact information
OHBTechnologyAGKarl-Ferdinand-Braun-Str. 828359 Bremen, Germany
Marco R. FuchsChairman of the Management Board
Michael VérInvestor RelationsPhone: +49 (0) 421 2020-727Fax: +49 (0) 421 [email protected]
www.ohb-technology.de
OH
B T
echn
olog
y A
G •
Ann
ual R
epor
t 201
0
The OHB Group at a glance ➤
Revenues
Total revenues
EBITDA
EBIT
EBT
Net income for the period
Earnings per share (EUR)
Total assets
Equity
Cash flow from operating activities
Equity investments
thereof capital spending
Employees on December 31
2010
425,448
453,323
33,688
22,730
15,384
9,642
0.55
466,396
105,170
42,123
19,126
6,543
1,677
2009
287,164
321,818
31,659
20,771
18,039
14,860
0.96
441,905
98,125
32,596
14,681
120
1,546
2008
232,473
260,029
28,736
18,708
16,092
8,998
0.61
328,104
81,362
9,353
16,260
1,520
1,284
2007
218,801
223,340
25,903
17,486
18,373
12,478
0.84
315,011
81,541
4,382
20,053
4,331
1,189
2006
163,147
185,699
27,936
20,428
21,982
12,016
0.81
287,494
79,104
–6,511
6,876
1,378
823
Closing price
Year high
Year low
Market capitalization at year-end
Number of shares
2010
16.60
18.34
11.50
290 million
17,468,096
2009
11.20
11.35
5.85
196 million
17,468,096
2008
8.00
13.92
4.82
119 million
14,928,096
2007
13.59
15.45
9.65
203 million
14,928,096
2006
11.55
11.89
7.40
172 million
14,928,096
The Stock in EUR 000s
The Group in EUR 000s
OHB Technology AG in Figures
Calendar of events in
Annual press conference and release of annual report for 2010, Bremen March 16
Analyst conference, Frankfurt/Main March 16
3 month report/analyst conference call May 12
Annual general meeting, Bremen May 12
6 month report/analyst conference call August 10
9 month report/analyst conference call November 9
Analyst presentation at Deutsches Eigenkapitalforum,
Frankfurt/Main November 21–23
OHB Technology AG
Karl-Ferdinand-Braun-Str. 8
28359 Bremen, Germany
Phone: +49 (0) 421 2020-8
Fax: +49 (0) 421 2020-613
www.ohb-technology.de
➤Glossary
Annual Report 2010
100 %
100 % 100 %
100 %
100 % 100 %
74,9 %
100 %
100 %
100 %
100 %
70 %
Glossary
THE GROUP
OHB Technology AG is a European aerospace and technology group and one of the most important independent forces in European aerospace. With almost 30 years of experience in developing and executing innovative space systems and structures and its range of specific aerospace and telematics products, the OHB Group is superbly positioned to face inter-national competition.
The OHB Group at a glance
Business units and subsidiaries
Space Systems + SecurityThis business unit’s activities encompass satellites, human spaceflight, exploration and security/reconnaissance technolo-gies. It develops and builds low-orbit and geostationary small satellites for science, navigation, communications and earth observation. The human space flight segment includes work on constructing the International Space Station ISS and fitting it out with research equipment. Exploration primarily entails research of outer space. Reconnaissance satellites and broad-band radio transmission of imaging data form the core of the security and reconnaissance activities.
Payloads + Science This business unit specializes in developing and implementing payloads, scientific equipment and devices for aeronautics/aerospace, research institutes and industry. Applications range from earth observation and satellite navigation to scientific payloads for exploration and the ISS as well as technology testing.
Space Transportation InternationalThis business unit comprises and integrates all non-German activities in connection with the construction of micro and mini-satellites and ground segments, human and unmanned space flight systems and scientific payloads.
Space Transportation + Aerospace Structures This business unit is primarily a supplier of key components for aerospace and aviation products and possesses system skills in the antenna and mechatronics segment. Thus, MT Aerospace currently contributes around 10% of the hardware for the Ariane 5 launch vehicle, making it the largest German supplier for this project. In addition, MT Aerospace supplies fresh and waste water tanks primarily for the Airbus fleet and develops and produces components for aircraft.
Telematics + Satellite OperationsThe Telematics business unit develops comprehensive solu-tions for the efficient management of transportation activities. The main focus of its activities is on OEM solutions for commer-cial vehicle producers, applications for government agencies and security organizations as well as geographical information systems and web-based database solutions. This business unit is also responsible for marketing ORBCOMM satellite services across Europe.
Telematics + Satellite Operations
OHB Teledata GmbH, Bremen, Germany
megatel GmbH, Bremen, Germany
Telematic Solutions S.p.A., Milan, Italy
Space Transportation + Aerospace Structures
MT Aerospace AG, Augsburg, Germany
MT Mechatronics GmbH, Mainz, Germany
MT Aerospace Guyane S.A.S., Kourou, French Guiana
MT Aerospace Satellite Products Ltd., Wolverhampton, UK
AGILE Astrorivelatore Gamma ad Immagini Leggero;
Italian astronomic research satellite
AIS Automatic Identification System; radio-based system
for identifying the location and parameters of larger ships
AQAP Allied Quality Assurance Publications; series of
standards developed by NATA from the military standard
for quality assurance systems
ARDS Aerial Reconnaissance Data System; broadband
system for transmitting aerial reconnaissance images
ARTES-7 Long-term ESA plan for developing a European
communications satellite network using the latest laser
communications.
ARTES-11 Long-term ESA plan for the development of
small geostationary telecommunications satellites
BMBVS German Federal Ministry of Traffic, Construction
and Urban Development
ATV Automated Transfer Vehicle; unmanned space
transporter for supply flights to the ISS
BMVg German Federal Ministry of Defense
BMWi German Federal Ministry of Economics and
Technology
BWB German Federal Office of Defense Technology and
Procurement
CFK Carbon fiber-reinforced plastic
CNES Centre national d‘études spatiales; French space
agency
COLUMBUS Name of the European module of the
International Space Station
DBO Defined benefit obligation
DGA Délégué général pour l’armement; French military
procurement agency
DLR Deutsches Zentrum für Luft- und Raumfahrt;
German Space Agency
D-WERDAS Demonstrator- Wide-range relay-based data
transmission system
EBIT Earnings before interest and taxes
EBITDA Earnings before interest, taxes, depreciation and
amortization
EBT Earnings before taxes
EDRS European Data Relay System; system for
implementing a data network in space using optical
satellite communications
EnMAP Environmental Mapping and Analysis Program;
satellite for hyperspectral Earth observation
EpM European Physiology Modules; human-physiology
research payload for the ISS Columbus module
EPS Earnings per share
ESA European Space Agency
E-SGA German acronym for Europeanization of satellite-
based reconnaissance
ETC European Transport Carrier; transport rack for
sensitive scientific experiments on board the European
Columbus module of the ISS
ExoMars ESA Mars exploration mission
R+D Research and development
FM Flight model
FSLGS French SAR-Lupe Ground Segment- configuration
of French Helios ground satellite to receive SAR-Lupe
reconnaissance images
Galileo European global satellite-based navigation
system; Galileo is a trade mark owned by the European
Commission. The GALILEO program is a joint initiative of
the European Union and the European Space Agency ESA.
GIS Geographic information system
GMES European initiative for the global monitoring for
environment and security
GRADFLEX GRAdient Driven FLuctuations EXperiment
IAS International Accounting Standards
IFRS International Financial Reporting Standards
IOT Industrial Operator Team; team for preparing the
start-up of the Columbus module for the ISS
ISS International Space Station
KSA Strategic reconnaissance command of the German
federal armed forces; user of the SAR-Lupe system
LEO Low earth orbit
MTG Meteosat Third Generation; program to develop,
build and launch third-generation weather satellites
NASA National Aeronautics and Space Administration;
US space agency
OEM Original equipment manufacturer
ORBCOMM CDS ORBCOMM Concept Demonstration
Satellite; first second-generation ORBCOMM satellite
PMD Propellant management system
PSLV Polar Satellite Launch Vehicle
SAR-Lupe Synthetic Aperture Radar-Lupe; system of
small satellites with a process for enhancing the quality of
radar images
Small GEOs Small geostationary satellites for
telecommunications and multimedia applications
Telematics A system linking telecommunications and IT
TET Technology mule; core element of the national
“On-Orbit Verification of New Techniques and Technolo-
gies” project
WAICO Waving and Coiling Response of Arabidopsis
Roots; biological experiment on board the International
Space Station
Space Systems + Security
OHB-System AG, Bremen, Germany
Payloads + Science
Kayser-Threde GmbH, Munich, Germany
Space International
Carlo Gavazzi Space S.p.A., Milan, Italy
LUXSPACE Sàrl, Betzdorf, Luxembourg
Antwerp Space N.V., Antwerp, Belgium
100 %
100 % 100 %
100 %
100 % 100 %
74,9 %
100 %
100 %
100 %
100 %
70 %
Glossary
THE GROUP
OHB Technology AG is a European aerospace and technology group and one of the most important independent forces in European aerospace. With almost 30 years of experience in developing and executing innovative space systems and structures and its range of specific aerospace and telematics products, the OHB Group is superbly positioned to face inter-national competition.
The OHB Group at a glance
Business units and subsidiaries
Space Systems + SecurityThis business unit’s activities encompass satellites, human spaceflight, exploration and security/reconnaissance technolo-gies. It develops and builds low-orbit and geostationary small satellites for science, navigation, communications and earth observation. The human space flight segment includes work on constructing the International Space Station ISS and fitting it out with research equipment. Exploration primarily entails research of outer space. Reconnaissance satellites and broad-band radio transmission of imaging data form the core of the security and reconnaissance activities.
Payloads + Science This business unit specializes in developing and implementing payloads, scientific equipment and devices for aeronautics/aerospace, research institutes and industry. Applications range from earth observation and satellite navigation to scientific payloads for exploration and the ISS as well as technology testing.
Space Transportation InternationalThis business unit comprises and integrates all non-German activities in connection with the construction of micro and mini-satellites and ground segments, human and unmanned space flight systems and scientific payloads.
Space Transportation + Aerospace Structures This business unit is primarily a supplier of key components for aerospace and aviation products and possesses system skills in the antenna and mechatronics segment. Thus, MT Aerospace currently contributes around 10% of the hardware for the Ariane 5 launch vehicle, making it the largest German supplier for this project. In addition, MT Aerospace supplies fresh and waste water tanks primarily for the Airbus fleet and develops and produces components for aircraft.
Telematics + Satellite OperationsThe Telematics business unit develops comprehensive solu-tions for the efficient management of transportation activities. The main focus of its activities is on OEM solutions for commer-cial vehicle producers, applications for government agencies and security organizations as well as geographical information systems and web-based database solutions. This business unit is also responsible for marketing ORBCOMM satellite services across Europe.
Telematics + Satellite Operations
OHB Teledata GmbH, Bremen, Germany
megatel GmbH, Bremen, Germany
Telematic Solutions S.p.A., Milan, Italy
Space Transportation + Aerospace Structures
MT Aerospace AG, Augsburg, Germany
MT Mechatronics GmbH, Mainz, Germany
MT Aerospace Guyane S.A.S., Kourou, French Guiana
MT Aerospace Satellite Products Ltd., Wolverhampton, UK
AGILE Astrorivelatore Gamma ad Immagini Leggero;
Italian astronomic research satellite
AIS Automatic Identification System; radio-based system
for identifying the location and parameters of larger ships
AQAP Allied Quality Assurance Publications; series of
standards developed by NATA from the military standard
for quality assurance systems
ARDS Aerial Reconnaissance Data System; broadband
system for transmitting aerial reconnaissance images
ARTES-7 Long-term ESA plan for developing a European
communications satellite network using the latest laser
communications.
ARTES-11 Long-term ESA plan for the development of
small geostationary telecommunications satellites
BMBVS German Federal Ministry of Traffic, Construction
and Urban Development
ATV Automated Transfer Vehicle; unmanned space
transporter for supply flights to the ISS
BMVg German Federal Ministry of Defense
BMWi German Federal Ministry of Economics and
Technology
BWB German Federal Office of Defense Technology and
Procurement
CFK Carbon fiber-reinforced plastic
CNES Centre national d‘études spatiales; French space
agency
COLUMBUS Name of the European module of the
International Space Station
DBO Defined benefit obligation
DGA Délégué général pour l’armement; French military
procurement agency
DLR Deutsches Zentrum für Luft- und Raumfahrt;
German Space Agency
D-WERDAS Demonstrator- Wide-range relay-based data
transmission system
EBIT Earnings before interest and taxes
EBITDA Earnings before interest, taxes, depreciation and
amortization
EBT Earnings before taxes
EDRS European Data Relay System; system for
implementing a data network in space using optical
satellite communications
EnMAP Environmental Mapping and Analysis Program;
satellite for hyperspectral Earth observation
EpM European Physiology Modules; human-physiology
research payload for the ISS Columbus module
EPS Earnings per share
ESA European Space Agency
E-SGA German acronym for Europeanization of satellite-
based reconnaissance
ETC European Transport Carrier; transport rack for
sensitive scientific experiments on board the European
Columbus module of the ISS
ExoMars ESA Mars exploration mission
R+D Research and development
FM Flight model
FSLGS French SAR-Lupe Ground Segment- configuration
of French Helios ground satellite to receive SAR-Lupe
reconnaissance images
Galileo European global satellite-based navigation
system; Galileo is a trade mark owned by the European
Commission. The GALILEO program is a joint initiative of
the European Union and the European Space Agency ESA.
GIS Geographic information system
GMES European initiative for the global monitoring for
environment and security
GRADFLEX GRAdient Driven FLuctuations EXperiment
IAS International Accounting Standards
IFRS International Financial Reporting Standards
IOT Industrial Operator Team; team for preparing the
start-up of the Columbus module for the ISS
ISS International Space Station
KSA Strategic reconnaissance command of the German
federal armed forces; user of the SAR-Lupe system
LEO Low earth orbit
MTG Meteosat Third Generation; program to develop,
build and launch third-generation weather satellites
NASA National Aeronautics and Space Administration;
US space agency
OEM Original equipment manufacturer
ORBCOMM CDS ORBCOMM Concept Demonstration
Satellite; first second-generation ORBCOMM satellite
PMD Propellant management system
PSLV Polar Satellite Launch Vehicle
SAR-Lupe Synthetic Aperture Radar-Lupe; system of
small satellites with a process for enhancing the quality of
radar images
Small GEOs Small geostationary satellites for
telecommunications and multimedia applications
Telematics A system linking telecommunications and IT
TET Technology mule; core element of the national
“On-Orbit Verification of New Techniques and Technolo-
gies” project
WAICO Waving and Coiling Response of Arabidopsis
Roots; biological experiment on board the International
Space Station
Space Systems + Security
OHB-System AG, Bremen, Germany
Payloads + Science
Kayser-Threde GmbH, Munich, Germany
Space International
Carlo Gavazzi Space S.p.A., Milan, Italy
LUXSPACE Sàrl, Betzdorf, Luxembourg
Antwerp Space N.V., Antwerp, Belgium
OH
B T
echn
olog
y A
G •
Ann
ual R
epor
t 201
0
The OHB Group at a glance ➤
Revenues
Total revenues
EBITDA
EBIT
EBT
Net income for the period
Earnings per share (EUR)
Total assets
Equity
Cash flow from operating activities
Equity investments
thereof capital spending
Employees on December 31
2010
425,448
453,323
33,688
22,730
15,384
9,642
0.55
466,396
105,170
42,123
19,126
6,543
1,677
2009
287,164
321,818
31,659
20,771
18,039
14,860
0.96
441,905
98,125
32,596
14,681
120
1,546
2008
232,473
260,029
28,736
18,708
16,092
8,998
0.61
328,104
81,362
9,353
16,260
1,520
1,284
2007
218,801
223,340
25,903
17,486
18,373
12,478
0.84
315,011
81,541
4,382
20,053
4,331
1,189
2006
163,147
185,699
27,936
20,428
21,982
12,016
0.81
287,494
79,104
–6,511
6,876
1,378
823
Closing price
Year high
Year low
Market capitalization at year-end
Number of shares
2010
16.60
18.34
11.50
290 million
17,468,096
2009
11.20
11.35
5.85
196 million
17,468,096
2008
8.00
13.92
4.82
119 million
14,928,096
2007
13.59
15.45
9.65
203 million
14,928,096
2006
11.55
11.89
7.40
172 million
14,928,096
The Stock in EUR 000s
The Group in EUR 000s
OHB Technology AG in Figures
Calendar of events in
Annual press conference and release of annual report for 2010, Bremen March 16
Analyst conference, Frankfurt/Main March 16
3 month report/analyst conference call May 12
Annual general meeting, Bremen May 12
6 month report/analyst conference call August 10
9 month report/analyst conference call November 9
Analyst presentation at Deutsches Eigenkapitalforum,
Frankfurt/Main November 21–23
OHB Technology AG
Karl-Ferdinand-Braun-Str. 8
28359 Bremen, Germany
Phone: +49 (0) 421 2020-8
Fax: +49 (0) 421 2020-613
www.ohb-technology.de
➤Glossary
Annual Report 2010
